COVID-19 Additional Relief (CARF)

Find out about the COVID-19 Additional Relief fund and how funds are distributed to eligible businesses.

About the COVID-19 Additional Relief Fund 

This rate relief scheme is for businesses that have struggled during the pandemic but have premises that have been previously ineligible for support. It covers the financial year 1 April 2021 to 31 March 2022. 

The government gave Brighton & Hove City Council £6.9 million to set up the CARF scheme, but allowed local councils to decide how to distribute the help. In Brighton and Hove, the scheme was initially targeted towards eligible businesses that had suffered significant detriment. We launched an online application scheme in February 2022 and although over £1 million was paid out there was a low response and so a new scheme has been adopted, to ensure that we can distribute as much funding as possible.  

The funding will now be distributed by the Business Rates team directly to eligible businesses, according to how their sector was affected during the pandemic. As of 31 July 2022, no business can make an application for CARF, as the reliefs will be applied automatically for those who are entitled. 

All reliefs will be applied by 30 September 2022. Please help us by avoiding contacting us about CARF, as we will need to concentrate on making sure all the relief is given out.  

How relief is decided 

Firstly, businesses do not qualify if they have already received (or should have received) Extended Retail Discount or Nursery Discount.  

If a business has not received either of those discounts, and no other exclusions apply, the amount of relief is determined by what sector they are in.  

To decide how much relief to give each sector, we have used the government’s analysis of changes in GVA (Gross Value Added), as set out by the Office of National Statistics. GVA measures the value of goods and services produced in an area, industry or sector of the economy.  

Each business has a SIC code (the Standard Industrial Classification of economic activities) and this determines the level of relief awarded. 

The following shows what the government analysis says about the impact on each sector, and the level of relief that we have set: 

SIC code Sector GVA change (impact on sector) % of relief awarded 
I Hospitality -55% 85%
R Arts, Entertainment and Recreation  -34% 80%
S Other Services  -32% 80%
Y Transport -32% 80%
N Administrative Services -21% 50%
P Education -20% 35%
F Construction -14% 35%
A Agriculture, Forestry and Fishing -13% 35%
Q Health -10% 35%
C Manufacturing -9% 20%
B Mining and Quarrying  -8% 20%
G Wholesale and Retail  -8% 20%
M Professional Services -7% 20%
J Information and Communication  -6% 20%
X J-N: Information, Communication, Financial Intermediation, Real Estate and Business Services  -6% 20%
K Financial Services -2% 0%
L Real Estate Activities  -2% 0%
D Energy -1% 0%
Z Storage and Distribution -1% 0%
E Water and waste management 0% 0%
H, T, U, V, W Not on the government list 0% 0%
O Public Administration  1% 0%

The following exclusions apply: 

  • The business has already exceeded the Subsidy limits of how much help they are allowed to receive – check the  subsidy rules below to see if this applies to your business 
  • Periods when the premises was empty (unless the premises was temporarily out of use because of COVID restrictions 
  • Premises where other Covid reliefs and Business Grants have been awarded for 2021-22, including Extended Retail Discount  
  • The premises already has a 100% discount for 2021-22, for example because of Small Business Rate Relief  
  • Public sector organisations:  
  • Government departments  
  • Legislative bodies  
  • Armed forces  
  • Local government  
  • Parish councils  
  • NHS, Police  
  • Fire and Rescue services  
  • Maintained schools, Academy Schools and Further or Higher Education Institutions

Subsidy rules

The CARF scheme is subject to subsidy rules set up between the EU and the UK.

You can still receive CARF as long as your company has not received more than £2,243,000 in grants, reliefs and other state economic help, over the period 2019/2020 to 2021/2022. 

COVID-19 business grants and the 2019/2020 Retail Relief should count towards this limit, but you should not count any Extended Retail Discount you have received since 1 April 2020.

Get more details of subsidy control.

If you have reached the limit of £2,243,000, you may still be able to claim CARF if the following applies:

  • you intend to use the support to fund uncovered fixed costs, such as costs not covered by profits for insurance, that have arisen since 1 March 2020
  • you have shown a decline in turnover of at least 30% within the April 2020 to March 2021 period, compared to the same 2019 to 2020 period

In these circumstances, there is an upper limit of £10 million of combined grants and reliefs. You may claim for up to 70% of your uncovered costs (although this 70% limit does not apply to small businesses with less than 50 employees and less than £9 million turnover where the limit is instead 90%).