Hardship Relief Awards
5.1. The Council has a duty under section 49(1) of the Local Government Finance Act 1988 to consider reducing or remitting rates liability by awarding hardship relief where a ratepayer would sustain hardship if a reduction or remission was not granted, and it would be reasonable to do so after having regard to the interests of council tax payers.
5.2. Government guidelines advise that the granting of a reduction or remission of rates should be the exception rather than the rule, so hardship relief will only be awarded in exceptional circumstances. The Council will, wherever possible, signpost ratepayers to any of the range of other options that are available to support businesses.
5.3. Hardship relief can be granted in respect of rates on both occupied and unoccupied properties where the Council is satisfied that the ratepayer would sustain hardship if it did not do so, and it is in the best interests of local council tax payers.
5.4. The considerations adopted in this guidance do not represent a blanket policy on hardship relief and all applications will be considered on their individual merits.
5.5. The Council will consider whether, and the degree to which:
- the hardship being suffered is as a direct result of unusual factors outside the control of the business
- granting relief would help a business through a particularly difficult short-term period
- not granting relief would impact on employment in the borough if the business were to close
- the loss of the business would result in the removal of a particularly important service or amenity in the borough
- granting relief will have on the long-term sustainability of the business (for which evidence must be provided)
5.6. The Council will also seek to ensure that hardship is not being incurred:
- solely due to general economic or market forces
- the business is suffering hardship due to poor financial management
- the proprietors or directors continue to take remuneration from the business
- the business could be supported from reserves or elsewhere within its wider organisation
- by excessive outgoings or drawings
5.7. The test of ‘hardship’ is not necessarily confined strictly to financial hardship and all relevant factors affecting the ability of a business to meet its liability for rates will be taken into account by the Council.
5.8. Applications for hardship rate relief will only be considered after consideration of any other forms of rate relief to which the applicant may be eligible.
5.9. Relief will normally be granted for specific determined period depending on the circumstances of the application, but not beyond 12 months.
5.10. All awards shall terminate at the end of the financial year if the award has not ended at an earlier date. Where the hardship continues a further application may be made in the new financial year, however in considering repeated applications consideration will be given to the number and value of previous awards.
