Cardiff Council has adopted two new rate relief schemes for owners and occupiers of non-domestic properties in a bid to encourage economic growth in the city.
The Cabinet has agreed to implement the New Development Scheme and the Open for Business Scheme, granting financial assistance to developers/owners of new properties and to new occupiers of long term empty retail premises.
Following the recent issue of two guidance notes by the Welsh Government in relation to new national non-domestic rating schemes, the Council is able to grant discretionary rate relief to qualifying owners and occupiers of properties included in the two schemes.
Cabinet Member for Finance and Economic Development, Cllr Russell Goodway, said: “One of our key priorities is to drive forward Cardiff’s economy to create jobs and opportunities and through the New Developments and Open for Business schemes, the council is able to allow owners or occupiers of new properties and new occupiers of long term empty properties a little bit of breathing space and time to establish themselves and their development.
“During these tough economic times, developers and businesses need all the help they can get in the early days of their individual ventures. The Welsh Government funding to local authorities now enables the Council to provide assistance through these two rate relief schemes which will hopefully encourage growth in the city.”
The New Developments Scheme’s main purpose is to offer financial assistance to developers in order to stimulate construction and encourage development. It was felt that the obligation to pay empty business rate charges was a significant disincentive against new development.
Through the scheme, additional rating relief is given to owners of “new” developments that remain empty on completion. A new building is one that has been completed less than 18 months previously and buildings completed on or after October 1, 2013 and before October 1, 2016. The level of relief awarded will be 100 per cent for the qualifying period.
The Open for Business Scheme is targeted at bringing long term vacant retail properties in town and shopping centres back into use and also seeks to support small businesses in their first year of trading or those considering a move into larger premises closer to a town centre or shopping area. The scheme will be available for 18 months but rate relief under the scheme will be available to each eligible business for just 12 months.
The scheme applies to properties that have a rateable value of up to £45,000 and have been empty for at least twelve months immediately prior to occupation. The level of relief awarded will be 50 per cent.
The Council will be reimbursed by way of a grant for any relief that is awarded under the two schemes and will also be expected to provide feedback to the Welsh Government as to whether the relief has helped in creating jobs.
Rate relief is awarded following a successful application and application forms are available from the Business Rates team by calling 029 2087 1491/1492.
