Title

WHITEHALL

Budget 2020: Councils compensated for rates bonanza

The Government has pledged to compensate local authorities for the entire loss of business rates caused by a raft of relief announcements in today’s Budget.

The Government has pledged to compensate local authorities for the entire loss of business rates caused by a raft of relief announcements in today's Budget.

To support small businesses affected by coronavirus, the Government is increasing it further to 100% for 2020/21.

The relief will also be expanded to the leisure and hospitality sectors.

These ‘temporary' measures, taken together with existing small business rates relief, mean that around 900,000 properties or 45% of all properties in England will receive 100% business rates relief in 2020/211.

The Government has also already announced the introduction of a £1,000 business rates discount for pubs with a rateable value below £100,000 in England for one year from 1 April 2020.

To support pubs in response to the virus the discount will be increased to £5,000.

The Government will also provide £2.2bn of funding for local authorities in England to provide £3,000 to around 700,000 business currently eligible for small business rate relief or rural rate relief ‘to help meet their ongoing business costs'.

It said 100% business rates retention pilots in Cornwall, Greater Manchester, Merseyside, west of England and West Midlands will continue, with London retaining 67% in 2020/21.

The Government is also reviewing the terms of Public Works Loan Board (PWLB) lending and to 'further enable high quality investment by local authorities,' the Government is cutting the interest rates for investment in social housing by 1% and making an extra £1.15bn of discounted loans available for local infrastructure projects.

Chief executive officer of the Chartered Institute of Public Finance and Accountancy, Rob Whiteman, said: 'The Treasury's rationale is to prioritise the use of PWLB for investment in services and local regeneration, and to reduce borrowing to invest in commercial property.

'This represents one of the most significant interventions by government since the inception of the prudential framework in April 2004.'

WHITEHALL

Budget: The effects on combined and strategic authorities

By Tiffany Cloynes | 05 December 2025

Tiffany Cloynes looks at at the financial implications of the Budget for combined authorities and strategic authorities. She says that while the introduction...

WHITEHALL

The final 15%: Why reaching every home with gigabit broadband matters

By Gráinne Gilmore | 05 December 2025

Gráinne Gilmore says the chancellor’s announcement of historic fiscal devolution – including £13bn of integrated settlements - gives local leaders unprecede...

WHITEHALL

Don't let lack of cash fail Total Place 2.0

By Heather Jameson | 04 December 2025

Reeves was never going to magic up a solution to public sector funding woes in the Budget, 'but there was barely a trick', says Heather Jameson.

WHITEHALL

Go North!

By Zoe Billingham | 04 December 2025

This Budget makes one thing clear: the Government is throwing its weight behind the North. Zoë Billingham unpacks the gains for England’s overlooked regions.

Michael Burton

Popular articles by Michael Burton