FSB: Businesses take action for automatic rate relief

Businesses in England are calling for the tax relief they are eligible for to be made automatic – saving them £400 million in total each year.

More than half of small businesses miss out on claiming back up to £1,200 off their business rates because they are unaware they are entitled to do so. Now they are calling on their MPs to support a Private Members Bill which would see business rate relief granted automatically for small businesses.

Business rates are the third largest cost to small firms, after salaries and rent. Yet, many small businesses are unaware they are entitled to rate relief because many local authorities do not publicise it well enough. Every year, around £400 million, calculated and ear-marked by the Treasury for eligible businesses, goes unclaimed – even though this money poses no extra cost to the Government or tax payer.

The Federation of Small Businesses (FSB) is working with a leading MP to pioneer a Private Members Bill to make rate relief for small firms automatic, as it is in Wales. Tabled by Peter Luff, Conservative MP for Mid Worcestershire and Chairman of the Business and Enterprise committee, the Small Business Rate Relief (Automatic Payment) Bill, is due to be debated in the House of Commons on Friday, 6 March.

Mr Luff also tabled an Early Day Motion in Parliament this week (Wednesday, 4 February) to raise support for the Bill.

Members of the FSB will be taking action across the country to ask their MPs to champion their case for automatic rate relief. They are supported in this nationwide action by the steering group of the Local Works coalition.

John Wright, National Chairman of the Federation of Small Businesses said:

“After rent and wages, rates are the biggest cost to a business and automatically getting the relief they are entitled to would be extremely welcome. During the recession, this cash injection could save many small businesses from laying-off staff or closing down completely.

“Our members will be contacting their MPs to support their call for automatic rate relief – one of the key issues the FSB has been calling for in its Keep Trade Local campaign over the past year.”

Ron Bailey, Director Local Works – Campaign for the Sustainable Communities Act, said:

“Communities are falling apart because small businesses are in danger. Making automatic the rate relief to which they are entitled would not only help small businesses stay afloat, it would also be a step towards keeping communities together. And this would in turn help with climate change as it would reduce the need to travel to shop and work.”

Ends

Notes:

1. Support this campaign by visiting www.fsb.org.uk and finding out how to take action.

2. The FSB is the UK’s leading business organisation with over 215,000 members. It exists to protect and promote the interests of the self-employed, and all those who run their own business. More information is available at http://www.fsb.org.uk

3. The Sustainable Communities Act Steering Group forms the steering body of Local Works, a coalition of over 90 national organisations that successfully campaigned for the Sustainable Communities Act to become law. The aim of the group is to promote the implementation of the Sustainable Communities Act by urging Local Authorities and citizens everywhere to use the Act’s radical new ‘bottom up’ process of governance. For more information go to www.localworks.org. The steering group is made up of: Camra, the Public and Commercial Services Union, the Association of Convenience Stores, the National Federation of Retail Newsagents, the National Federation of Sub-postmasters, Help the Aged and the Federation of Small Businesses.

Contacts:

Stephen Alambritis: 020 7592 8112 / 07788 422155
Sophie Kummer: 020 7592 8128 / 07917 628 998
Prue Watson: 020 7592 8121 / 07825 125695
Marc Shoffman: 020 7592 8113 / 07595 067068

For regional FSB contacts please go to http://www.fsb.org.uk