Retail, hospitality and leisure relief scheme 2022/2023

At the Budget on 27 October 2021, the Chancellor announced that the government would provide additional business rates support in 2022-23 for eligible retail, hospitality and leisure businesses in England occupying a qualifying property.

Eligible occupied retail, hospitality and leisure properties will be able to claim 50% relief, up to a cash cap limit of £110,000 per business.

The scheme details and criteria can be found by visiting the GOV.UK retail, hospitality and leisure business rates relief scheme webpage.

To discuss your businesses eligibility please contact the business rates team on 01242 264255 or email

The cash cap and subsidy control

Under the cash cap, no ratepayer can in any circumstances exceed the £110,000 cash cap across all of their hereditaments in England. Where a ratepayer has a qualifying connection with another ratepayer then those ratepayers should be considered as one ratepayer for the purposes of the cash caps. A ratepayer shall be treated as having a qualifying connection with another:

  • where both ratepayers are companies, and
    • one is a subsidiary of the other, or
    • both are subsidiaries of the same company; or
  • where only one ratepayer is a company, the other ratepayer (the “second ratepayer”) has such an interest in that company as would, if the second ratepayer were a company, result in its being the holding company of the other.

Furthermore, the retail hospitality and leisure scheme is likely to amount to subsidy. Any relief provided by local authorities under this scheme will need to comply with the UK’s domestic and international subsidy control obligations (See the BEIS guidance for public authorities which explains the subsidies chapter of the UK-EU Trade and Cooperation Agreement (TCA), World Trade Organisation rules on subsidies, and other international subsidy control commitments).

To the extent that a local authority is seeking to provide relief that falls within the Small Amounts of Financial Assistance Allowance, Article 364 of the TCA allows an economic actor (e.g. a holding company and its subsidiaries) to receive up to £325,000 Special Drawing Rights (£343,000 as at 9 December 2021) in a three-year period (consisting of the 2022/23 year and the two previous financial years). Expanded Retail Discount granted in either 2020/21 or 2021/22 does not count towards the £343,000 allowance but BEIS business grants (throughout the 3 years) and any other subsidies claimed under the Small Amounts of Financial Assistance limit should be counted.