A BUSINESS owner parked a truck outside the council offices in protest over a coronavirus rate holiday.

Nigel Hannon, who runs Scorpion Engineering, says a technicality in the way he pays business rates could see his company go to the wall.

But Swindon Borough Council says although it wants to help, its hands have been tied so far by rules set by central government.

Mr Hannon’s firm – a vehicle recovery and repair business based at Hawksworth Trading Estate in North Star – employs 20 people. It pays £20,000 a year in national non-domestic rates, which are used to fund councils like Swindon’s.

But council officers have told him the company is not eligible for any available relief for firms during the UK lockdown, which was extended for three weeks yesterday.

Mr Hannon said: “The problem is because this building, which we have a corner of, is still classified as a factory.

“And the cut-off for the assistance is based on the rateable value of the premises.”

That cut-off is a rateable value of £51,000 per year, which the factory unit taken as a whole easily exceeds. Mr Hannon says he does not use or pay for the entirety of the unit – and his tenancy agreement shows how much business rate he is liable to pay.

He said: “I’ve sent all this to the council, but I’ve just been told I’m not eligible and I have to pay my business rates. It’s just a technicality, but the council is discriminating against this business.

“We employ 20 people, we pay business rates and VAT and corporation tax and everything is in order.

“I saw Boris Johnson on the TV saying nobody would be left behind, and there would be help for businesses, especially small businesses. But there’s nothing for us.

“It’s very difficult. It could mean we have to fold.”

Another tenant of the unit is vehicle body repairers Smart Car UK.

Its managing director Phil Merritt said: “We’re all paying about £16,000 each as a proportion of the larger sum.

“But it means we don’t appear as the ratepayer and don’t get any business rate relief.”

Both Mr Hannon and Mr Merritt say their companies have tried to help the community during the pandemic crisis.

Mr Hannon has offered the council the use of the company’s vehicles to make deliveries of essential supplies to vulnerable people who are having to stay indoors, while Mr Merritt’s car bodywork company donated all the facemasks its staff use to key health and care workers.

Mr Merritt said: “We’re doing our bit, but we’re being expected to pay business rates when other companies no smaller than ours have a holiday from rates and are eligible for a grant. We are not happy.”

The owner of the industrial unit, Fish Brothers Holdings, says it is seeking clarification from the council.

Deputy council leader and cabinet member for finance Russell Holland said: “We are incredibly grateful to the government for quickly providing financial support to businesses in Swindon.

“Our officers are working extremely hard to get this funding out to eligible firms as soon as possible because we recognise the current lockdown is having a major impact on them.

“So far we have provided more than £16m in funding to a total of 1,360 businesses and we are continuing to process applications on a daily basis.

“We would like to be able to help Mr Hannon and we will be carefully reviewing his case and liaising with the government to see what can be done within the rules of the scheme.”

The guidelines on which companies are eligible for both business rate relief and the support grants are set by the government’s Department for Business Energy and Industrial Strategy.

A spokesman said the issue facing Mr Hannon and Mr Merritt had been raised by other companies but declined to comment further.