Peterborough City Council has published a new guide to clarify how it makes decisions regarding business rates relief, addressing ongoing questions from the local business community. The online resource, released on 7 April 2026, explains that while the local authority administers the bills and collects payments, it must follow strict national legislation set by the government when determining which businesses are eligible for tax relief.
The council issued the update following public discussion regarding local enterprises that did not qualify for charitable relief. One such case involved the Unity store, operated by Up The Garden Bath CIC in the Queensgate Shopping Centre. The council ruled in 2024 that the store was ineligible for charity relief because it was predominantly retail in nature. This decision resulted in the business facing an additional annual bill of £24,000 to £26,000.
According to the council, to qualify for mandatory charity relief, an organisation must meet a two-part test: the organisation must be established for charitable purposes, and the premises must be used wholly or mainly for those same purposes. The council noted that businesses which predominantly sell non-donated items for fundraising do not meet the legal requirements for this relief. Furthermore, the council’s Discretionary Rate Relief Guidelines state that applications are unlikely to be successful if the organisation competes with other commercial ratepayers, such as gyms or standard retail shops.
While some businesses face challenges with rates, other support is available. As of April 2026, new government changes have taken effect, including a redesigned transitional relief scheme worth £3.2 billion and an expanded Supporting Small Business Scheme. These measures are intended to help those facing large bill increases, with the small business scheme capping rises at the higher of £800 or specific transitional relief caps.
The council encourages any local business owner who is concerned about their rates to contact its Business Rates Department directly. Officers are available to discuss potential relief options and provide guidance on individual circumstances.
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