COVID-19 Additional Relief Fund (CARF) 2021-22

On 25 March 2021, the government announced a new COVID-19 Additional Relief Fund (CARF) of £1.5 billion to support business rate payers affected by the pandemic that were ineligible for the existing support linked to business rates.

On 15 December 2021, the government published additional guidance and clarification on the scheme to local authorities.

The Newcastle upon Tyne City Council COVID-19 Additional Relief Fund (CARF) has now been approved by Cabinet.

The Newcastle upon Tyne City Council £8.3 Million CARF scheme aims to support businesses adversely financially affected by the pandemic, that were ineligible to claim from previously funded government schemes. The relief will be applied by direct award except where it appears as though an organisation may breach subsidy limits if the relief is awarded automatically. These organisations will be invited to apply so the relief will be withheld until the applications are received and assessed.

The relief is awarded using current business rates records. Therefore, any business that has been awarded CARF but is ineligible to receive it, or wishes to reject the CARF allocation, should contact business.rates@newcastle.gov.uk quoting the business rates account reference(s) so that our records can be updated.

Exclusions

Not all ratepayers will qualify for the relief. The list below sets out the types of uses that Central government does not consider to be eligible for this relief:

• Ratepayers who for the same period of the relief either are or would have been eligible for the Extended Retail Discount (covering Retail, Hospitality and Leisure), the Nursery Discount or the Airport and Ground Operations Support Scheme (AGOSS).
• Unoccupied hereditaments other than those instructed by Central Government to close temporarily.

The list below sets out the types of uses that this Council does not consider to be eligible for this relief:

• Exempt properties
• Any hereditament (such as ATMs) that are in the process of being removed from the commercial rating list
• Insolvent companies, dormant companies, companies in administration, companies in receipt of a striking off notice or a proposal to strike-off, bankrupt ratepayers, IVA, CVA, Debt Relief Orders, Breathing Space Respite.
• Government and council occupied hereditaments
• Police buildings
• NHS buildings that are likely to breach subsidy limits
• Educational facilities that are likely to breach subsidy limits
• Businesses that engage in rate mitigation schemes (such as periodic intermittent occupation) will not be considered for this type of relief

Who is eligible ?

The property must have been in the National Non-Domestic Rating list on 1 April 2021 and

• The business must have had an occupied business rates charge to pay in the 2021/22 financial year (after other reliefs have been applied) and:
• Do not meet any of the non-eligibility criteria listed above and:
• Have not exceeded the subsidy control limits (see below for further information)

https://www.gov.uk/guidance/state-aid

https://www.gov.uk/government/publications/complying-with-the-uks-international-obligations-on-subsidy-control-guidance-for-public-authorities

https://ec.europa.eu/competition-policy/state-aid/latest-news_en

https://ec.europa.eu/info/funding-tenders/procedures-guidelines-tenders/information-contractors-and-beneficiaries/exchange-rate-inforeuro_en

and:

• Can evidentially demonstrate if required that they have been adversely affected by the pandemic and have been unable to adequately adapt to that impact

Calculation of Relief

The total percentage of relief available for each eligible property for 2021-22 under this scheme will be determined by the rateable value of the property as detailed below:

The total percentage of relief will be calculated on the net charges after mandatory reliefs and other discretionary reliefs have been applied.

Ratepayers that pay business rates for more than one property will be entitled to relief for each of the eligible properties, subject to a minimum of £100 per business and a cap cash of £110,00 per business (for 2021/22) and to Subsidy Control Limits.

The full Discretionary Policy and CARF Scheme (Appendix M) can be viewed via the link below:

https://www.newcastle.gov.uk/reliefsandexemptions