Business rates reductions and exemptions

In its final report of the Business Rates Review published in October 2021, the Government announced a 100% relief for eligible low-carbon heat networks that have their own rating assessment from 1 April 2023. The relief is intended to be for those networks generating from a low carbon source to ensure the policy supports decarbonisation.

For financial year 2023/2024 Local Authorities are expected to use existing local government discretionary powers under Section 47 of the Local Government Finance Act 1988. From 1 April 2024 the relief is mandatory.

Heat networks take heat of cooling from a central source(s) and deliver it to a variety of different customers such as public buildings, shops, offices, hospitals, universities and homes. By supplying multiple buildings, they avoid the need for individual boilers or electric heaters in every building. Heat networks have the potential to reduce bills, support local regeneration and be a cost-effective way of reducing carbon emissions from heating. Heat networks play an important role in decarbonizing heat and support delivery of net zero commitments. They are uniquely able to unlock otherwise inaccessible large-scale renewable and recovered heat sources such as waste heat and heat from rivers and mines.

Please note that this relief will cease at the end of the 2023/24 financial year.

Eligibility criteria

• The Property must be wholly or mainly used for the purposes of a heat network
• The heat is over the next 12 months expected to be generated from a low carbon source (irrespective of whether that source is located on the Property or on a different Property.
• Subject to Subsidy Control limits

Application process

There is no application form for this relief. To apply, please write to the Business Rates team giving full details of why your business should be considered for this local discount and provide all information you think is relevant to support your application, including your contact details.

For more information please read our Policy for all Discretionary Relief (excluding charities & not for profit organisations)

Full guidance from GOV.UK.