Business rates hardship relief

The policy has recently been reviewed and the aims of the new policy are:

• To support genuine businesses suffering financial hardship;
• To promote access to relevant business support agencies;
• To provide assistance, where possible, to new businesses via our partnership with Business Link for London
• To target relief towards Small & Medium Enterprises (SMEs)
• To enable businesses to survive and ultimately contribute towards Harrow 's economy

Below are the key criteria for considering applications for business rate relief under Section 49 of the Local Government Finance Act 1988.

This policy was approved by Cabinet on 22nd October 2009

1. The rateable value of the property for which the application is being made must not be more than or £21,500 under the 1st April 2005 rating list or £25,499 under the 1st April 2010 rating list.
2. The applicant must have only one trading outlet in London Borough of Harrow.
3. The applicant must be in receipt of Small Business Rate Relief.
4. The applicant must be trading from the property from which relief is being requested.
5. Applicants must have a business plan in place approved by either their bank or an approved business support agency.
6. Applicants must agree to undertake a business diagnostic from Harrow in Business or a supplier referred by Business Link of London. 

If the above are fulfilled, the application will consider:-

• If a refusal to grant relief would worsen employment in the area e.g. where a business employs local residents
• If a refusal would reduce the amenities of an area e.g. the loss of a unique business or perhaps a business serving a need in the community
• If the closure of the business would have an adverse direct or indirect financial impact on the local authority.

If successful, the amount of relief awarded will depend on:

a) The rateable value of the property i.e. a maximum of £2,599.00 in any one year if the rateable value is less than £12,000 or a maximum of £5,000.00 if the rateable value is between £12,001 and £25,499 (£21,499 up to 31st March 2010).

b) Whether the applicant lives within the London Borough of Harrow or not i.e. if within the borough they will receive 100% of the support, outside of the borough it will be reduced to 50% of the support.

Supporting Documents

Applications should be submitted with a short summary of the financial difficulties faced including confirmation of any lines of credit already sought e.g. bank loans, overdraft etc and the most recent accounts.