Small Business Rates Relief

DavidBrazier

Daniel you are correct. The Government has tweaked the rules for the Coronavirus Business Interruption Loan Scheme – known as CBILS. Previously charities were required to have at least 50% of their income coming from trading activities e.g. charity shops. This rule has now been dropped. And unlike the Retail, Hospitality and Leisure Sector grants which are limited to a maximum of £25,000 per property CBILS loans can go up to £5 Million. But despite this I don’t see there being many takers. This is because most charities are never going to get back the money they are losing now. Maybe if you had a big fundraising event that was postponed but not cancelled you might get it all back. But it is a bit risky. Alternatively, a charity might use CBILS in the belief that sustaining its charitable activities now is absolutely vital. And simply accept that the consequent reduction in the proportion of its unrestricted funds spent on charitable activities in the future (due to having to repay the loan) is a price worth paying. But convincing donors of this in a few years time is not going to be easy. Hence the lack of takers.

DavidBrazier

Great News. Parity for Charity has been achieved. In just 39 days ! New Government Guidance was sent to Local Authorities today. It asks Local Authorities to prioritise grants for “charity properties in receipt of charitable business rates relief which would otherwise have been eligible for Small Business Rates Relief”. Small Businesses got a £10,000 grant automatically if they got Small Business Rates Relief on 11 March 2020. Previously any charity getting charitable business rates relief did not. The new Guidance is only discretionary. It gives Local Authorities the power to make grant payments but does not require them to do so. Charities will have to apply for it. And every Local Authority will have its own criteria. Grants could be for £25,000; £10,000; or any amount up to £10,000.  Not quite parity for charity. But very close. And of course, any Charity getting a £25,000 grant will have done much better than the many Small Businesses who only got £10,000. Please let us know on this Forum how you get on.

DavidBrazier

In the immortal words of Marvin Gaye “What is Going On ?” Almost 2 weeks ago new guidance on the “Local Authority Discretionary Grant Fund” appeared on GOV. UK. Councils were told they “should set out the scope of their discretionary grant scheme on their website”. I checked a few Council websites over the bank holiday. No sign of any scopes or indeed scopes of any design ! What is going on ? In the 7 weeks since we started this thread people connected to 16 different organisations getting charitable rates relief have posted on it. So far as I am aware 3 of them have got a £25,000 grant and another has been invited to apply for one. All under the old scheme. Has anyone got a grant from the new Discretionary Fund ? Has anyone seen the “scope” of the new fund on any Council website ? Please let us know by posting on this site – What is Going On.