Hardship Relief

Discretionary powers allow Councils to reduce or remit, in full, business rates where it is satisfied that it would cause the ratepayer hardship if it did not do so.

Each Council decides for itself how it will apply hardship relief, the frequently asked questions provide a guide to how hardship relief is administered in Bromsgrove.

Who is eligible for hardship relief?

1. the ratepayer would sustain hardship if the council did not award relief, and
2. it is reasonable for the council to award relief having regard to the interests of its council tax payers.

What is Hardship?

There is no statutory definition of hardship. The dictionary says it is a "condition of life difficult to endure" or "something that causes suffering or deprivation".

How can I apply?

Due to the nature of hardship relief Bromsgrove District Council assess each application on an individual basis, therefore any application should be made in writing stating the reason why relief is sought, the effect that a failure to award relief may have and the impact that a failure to award relief would have on the local community.

You will also be required to provide financial information to support your application.  This will include both business and personal accounts.

How will you decide whether relief is granted?

Guidance issued by the government states;

• Reduction or remission of rates on grounds of hardship should be the exception rather than the rule;
• All relevant factors affecting the ability of a business/ratepayer to meet their liability for rates should be taken into account;
• The 'interests' of council 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 only provider of a service in the area;
• Where the granting of relief would have an adverse effect on the financial interests of council tax payers, the case for a reduction or remission of rates payable may still on balance outweigh the cost to tax payers if the other interests of the council tax payers are greater;
• The hardship caused to a ratepayer may be self-evident, for example where a business has been affected by severe loss of trade, due to external factors such as natural disasters. However, authorities may wish to consider how the business can demonstrate such loss of trade or business. For example, do accounts, order books, till receipts or VAT returns show a marked decline in trade compared to corresponding periods in previous years?

All of these factors will be considered when determining your application.

Can I claim hardship relief for unoccupied property rates?

Relief can be granted for unoccupied property rates, however you will need to demonstrate that the granting of relief will be in the interests of Council Tax payers.