DCLG projections on value of charitable business rates relief 2017-18 in England

According to new figures published by DCLG, local authorities estimate the non-domestic rating income for England, in 2017-18, will be £23.8 billion. This is what authorities estimate they will collect after all reliefs, accounting adjustments and sums retained outside the rates retention scheme are taken into consideration.

Local authorities report they will grant a total of £3.8 billion of relief from business rates in 2017-18. Total relief provided to charitable occupations (that is both mandatory and discretionary relief) is expected to amount to £1.8 billion in respect of 2017-18, and these reliefs account for 48% of the total relief to be granted.

Of the £1.8bn relief, mandatory (80%) relief amounts to  £1.769bn and discretionary (up to 20%) relief amounts to £51m. This is an £180m increase from the 2016-17 forecasts of £1.62bn overall business rates relief for charities (almost entirely relating to mandatory relief).

CTG has highlighted the postcode lottery that charities face in respect of discretionary rate relief. CTG is always concerned at attempts to limit reliefs to “deserving charities” as this sets a dangerous precedent that could threaten to undermine the principle of charitable tax relief.