Hardship Relief
Section 49 of the Local Government Finance Act 1988 gives the council a discretionary power to reduce the payment of rates by granting Hardship Relief. Some of the cost of any Hardship Relief granted falls directly on local council tax payers, so we must consider the benefits to the wider community within North Warwickshire when making a decision, together with the ratepayer making the application.
Hardship is considered as circumstances that arise beyond the business's control and outside of the normal risk associated with running a business of that type, to the extent that the viability of the business would be threatened should the award not be made.
Qualifying Criteria
The applicant must be liable to pay Non-Domestic Rates to North Warwickshire Borough Council. The council must be satisfied that:
- The ratepayer would sustain hardship if the council failed to grant Hardship Relief; and
- It is reasonable to grant Hardship Relief having regard to the interest of person's subject to the Council Tax.
The test of "hardship" need not be confined strictly to financial hardship and applicants should disclose all relevant factors affecting the ability of the business to meet its rate liability.
The "interest" of local council tax payers may go wider than direct financial interests; for example, where employment prospects in an area would be worsened by the ratepayer going out of business, or the amenities of an area might be reduced by, for instance, the loss of a neighbourhood shop.
Application Requirements
The following information will be required in support of applications for hardship relief:
- The last two years' accounts.
- Cash flow forecast for a minimum of the next twelve months.
- A business plan to demonstrate how granting the relief will improve the viability and financial position of the business.
To make an application, please e-mail businessrates@northwarks.gov.uk
For more information, please see our Discretionary Business Rate Relief policy.