Business rates - hardship relief

Section 49 of the Local Government Finance Act 1988 allows a local authority to reduce or remit the whole or part of the rates payable by the ratepayer provided that:

the ratepayer would sustain hardship if the authority did not do so

and

it is reasonable for the authority to do so having regard to the interests of persons subject to council tax. 

Central Government has given the following guidance on hardship as follows:

(a)  Although authorities may adopt rules for consideration of hardship cases, they should not adopt a blanket policy either to give or not to give relief; each case should be considered on its own merits;

(b)  Reduction or remission of rates on grounds of hardship should be the exception rather than the rule;

(c)  The test of hardship need not be confined strictly to financial hardship.  All relevant factors affecting the ability of a business to meet its liabilities for rates should be taken into account;

(d)  The interests of local taxpayers in an area may go wider than direct financial interests, for example where the employment prospects in the area would be worsened by a company going out of business, or the amenities of an area might be reduced by, for instance, the loss of the only shop in the village; and

(e)  Where the granting of relief would have an adverse effect on the financial interests of local taxpayers, the case for a reduction or remission of rates payable may still on balance outweigh the cost to the local taxpayers.

In addition, the Secretary of State advised that hardship could apply to companies as well as individuals.

How do I apply for hardship relief?

Ratepayers wishing to apply for hardship relief must complete and return the claim form in the resources box to the right and provide the necessary information as listed on the application form. 

Each case for hardship relief will be assessed by the council on its own merits after taking into account the interests of council taxpayers, as it is council tax funds that are used to partly fund hardship relief.