Overview

This bill aims to automate the payment of mandatory rate relief for small businesses in England. Instead of businesses applying for this relief, it will be automatically applied by the billing authority, streamlining the process and reducing administrative burden.

Description

The Small Business Rate Relief (Automatic Payment) Bill mandates that the Secretary of State create regulations within six months to automate payments of mandatory relief for eligible small businesses. This relief is defined in section 43(4B)(a) of the Local Government Finance Act 1988.

Eligibility: Eligibility for automatic relief will be determined using the rateable value of the property as listed in the local non-domestic rating list. If a business is found ineligible for all or part of the relief after automatic payment, the billing authority can reclaim the funds. Regulations will be created to allow for the recovery of wrongly paid relief.

Process: The bill requires that these regulations be approved by both Houses of Parliament and allows for incidental, supplemental, consequential and transitional provisions. The bill defines key terms like "mandatory relief for small businesses," "billing authority," and "hereditament," referencing the 1988 Act for their definitions. The bill applies only to England.

Government Spending

The bill doesn't directly increase or decrease government spending. Instead, it aims to improve efficiency by automating the existing relief program. The potential for a slight reduction in administrative costs for both the government and businesses is possible but no concrete figures are available.

Groups Affected

• Small Businesses in England: Will benefit from a simplified process for receiving rate relief.
• Billing Authorities: Will be responsible for implementing the automatic payment system and potentially recovering overpayments.
• The Secretary of State: Responsible for creating and implementing the regulations.
• Parliament: Responsible for approving the regulations.

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