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The Federation of Small Businesses (FSB) has expressed concern that the forthcoming Business Rate Supplements Bill will impose extra tax burdens on firms.
The organisation has suggested a series of amendments to ‘soften the blow’ of the legislation – and it has insisted that small businesses have a say on all projects that will be subsidised by a supplementary tax currently being considered as part of the bill.
The supplement would grant local authorities the power to raise an extra 2p from every £1 on the national business rates.
The FSB is looking for guarantees that:
- the supplement will only be spent on economic development;
- firms will be consulted and have a vote on all supplements, followed by an independent review on how the money is spent;
- the public sector will also contribute;
- properties liable for business rates with a rateable value of £50,000 or less will be exempt; and
- the £50,000 threshold will be reconsidered once the property market improves.
The trade body’s national chairman, John Wright, said: ‘With small business failures entering the hundreds each day and taking thousands of jobs with them, it seems counterproductive to introduce a new tax.
‘However, if business owners are to pay this supplement, it is important that they have a say on where it goes.
‘This revenue must be ring-fenced for economic development, rather than to shore up Government infrastructure projects and local council budgets.’
