MORE than 100 small businesses are to benefit from a district council-run scheme to help see them through the economic recession.

Members of Hambleton District Council have agreed to allocate £55,000 to a project that will help rural pubs, cafes, shops and petrol stations.

They will be exempt from business rates for the 12 months from April 1 this year to March 31 next year – an additional £220,000 in relief.

The decision to go ahead with the project was made at a recent meeting of the district council’s cabinet committee.

The authority gives 100 per cent rate relief to village post offices and sole general stores, as well as 50 per cent relief to sole village pubs, petrol stations and food stores in rural areas.

Sports clubs and community groups are also covered, at the authority’s discretion.

Unlike council tax, which is paid by residential householders, business rates are a tax levied by central Government.

However, the district council collects the money from local businesses.

The council is able to provide relief from these rates, but Westminster limitations mean the relief is only available to businesses where the rateable value is less than £14,000 and the business is in a community with less than 3,000 residents.

This new scheme extends to all village businesses that fit these criteria.

Councillor Arthur Barker, leader of the council, said: "For the next 12 months, there will be 108 businesses across Hambleton that will feel a little better off by not paying any rates.

"It is a great bonus for them during these difficult times and we hope it will help them become more viable and help them survive this recession.

"We recognise it is a difficult time to be in business and want to help as much as we can."

All eligible businesses will receive written confirmation over the next month.

Rural industrial units, boarding houses, camping and caravan sites, car showrooms, offices, land used for storage, garages, holiday homes, vehicle workshops, warehouses and factories are not covered by this scheme.

The rates relief scheme, which was first suggested earlier this year, was one of a number of schemes considered by the council, as it sought to help people through the recession.