Not eligible for small business grant

Suzg1978

Hi

I'm sure others must be in a similar situation - I am a business owner of a fitness facility / gym and I rent a unit within a managed building. My monthly rent is inclusive of rent + business rates etc so therefore I am not the registered ratepayer on the property as the building pays it direct on our behalf. Having spoken with our local council, this means we are not eligible for the business grant as that will go to the building owner who is registered. What advice can you suggest on this - should the building owner be passing on any support and if they are also now benefiting from business rates exemption for remainder of year should we be seeing this benefit also.

Where do we stand in this scenario - any advice appreciated to help my discussions with landlord who is demanding we continue to pay monthly rent even though our business being fitness has been closed as part of government guidance.

Thanks
Suzanne

Jeremy535897

This is by no means an unusual case. First, I suggest you read the following documents:
https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/878807/business_support_grants-local_authorities_guidance.pdf Paragraphs 32 to 42 are particularly relevant.
You should also read these FAQs for local authorities. (It has South Norfolk on it, but is clearly of wider application.)
https://www.south-norfolk.gov.uk/sites/default/files/Covid-19-Grant-Funding-FAQ-Apr20.pdf
Next, read this guide (from Brent, but applicable widely):
https://www.brent.gov.uk/business/business-rates/who-pays-business-rates/
You will see that you are ultimately responsible for the rates, as occupier. Now that so many properties have zero rates bills, due to small business rate relief for example, landlords and councils have not rushed to change things. Had your landlord done things properly, you would be the person who might be eligible for the grant, not the landlord.

lincroft1710

I would point out that councils do not decide whether individual businesses in a building should have their own rating assessment, it falls to the Valuation Office Agency in England and Wales. There will be occasions when the criteria for separate assessments are not met and therefore a single rating assessment remains correct.

mattyprice4004

In the same boat here, it’s just tough unfortunately unless the system changes. 

vinnycap

Same boat here, I own a cafe within a health club and pay monthly rent inclusive. The club is too big to get any grants so no chance of me getting any help. There is a petition on the government website and I would also suggest emailing your local MP. 

Consulting

The guidelines for the grant eligibility do say that Councils can use discretion. As a LL I am lobbying my Council to see if my tenants who pay office rental inclusive of pro rata business rates can be registered for SBRR and thus be awarded the £10,000 grant fund. They as the cases above, if fairness and discretion, is applied need this support. 

Hesel18

this from Gov.uk website 02 May

The Business Secretary Alok Sharma and Minister for Regional Growth and Local Government, Simon Clarke spoke to local authorities in England yesterday to set out that up to £617 million would be made available.

This is an additional 5% uplift to the £12.33 billion funding previously announced for the Small Business Grants Fund (SBGF) and the Retail, Hospitality and Leisure Grants Fund (RHLGF), so up to £617 million. We will confirm the exact amount for each local authority next week.

This additional fund is aimed at small businesses with ongoing fixed property-related costs. We are asking local authorities to prioritise businesses in shared spaces, regular market traders, small charity properties that would meet the criteria for Small Business Rates Relief, and bed and breakfasts that pay council tax rather than business rates. But local authorities may choose to make payments to other businesses based on local economic need. The allocation of funding will be at the discretion of local authorities.

Businesses must be small, under 50 employees, and they must also be able to demonstrate that they have seen a significant drop of income due to Coronavirus restriction measures.

There will be three levels of grant payments. The maximum will be £25,000. There will also be grants of £10,000. local authorities will have discretion to make payments of any amount under £10,000. It will be for councils to adapt this approach to local circumstances.

Further guidance for local authorities will be set out shortly.

Jeremy535897

https://www.gov.uk/government/news/top-up-to-local-business-grant-funds-scheme