FSB: Over 100 MPs back FSB automatic rate relief bill

Support is growing for a Private Members Bill pioneered by the Federation of Small Businesses (FSB) with over 100 MPs signing an Early Day Motion calling for rate relief to be made automatic for eligible firms.

The Early Day Motion was tabled by Peter Luff, Conservative MP for Mid Worcestershire, and has so far been signed, by over 100 MPs ahead of a debate on the Bill in the House of Commons on Friday 6 March.

The FSB is working with Mr Luff who is also Chairman of the Business and Enterprise Committee on the Small Business Rate Relief (Automatic Payment) Bill, which would see rate relief granted automatically to those firms that are entitled to it.

Exemption from paying business rates, which already happens automatically in Wales, could be worth up to £1,200 and would be an important saving and could help small businesses with their cash flow.

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 their local authorities do not publicise it well enough. Every year, around £400 million goes unclaimed, even though this money poses no extra cost to the Government or tax payer.

Members of the FSB will be taking action across the country to ask their MPs to champion their case for automatic rate relief by signing the Early Day Motion and supporting the Bill on the day of the debate. The nationwide campaign is also being supported by the steering group of the Local Works coalition as well as other business organisations.

FSB National Chairman John Wright said:

“It is great to see increased support for this Bill, which demonstrates a general consensus of the importance of this relief for small businesses during these tough times. 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.”

Mr Luff said:

“I am delighted at the strong and growing support the Bill is gaining both in the House of Commons and in the wider world; it shows how many people and organisations agree that it is an important measure that could really make the difference for many small businesses.”

ENDS

Notes to Editors

1. 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.

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

3. The Bill is also supported by the Local Works 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: the Federation of Small Businesses, Camra, the Public and Commercial Services Union, the Association of Convenience Stores, the National Federation of Retail Newsagents, the National Federation of Sub-postmasters and Help the Aged. It is also supported by the British Chambers of Commerce and the Institute of Directors.

4. This Bill forms part of the FSB’s Keep Trade Local campaign which seeks to stem the tide of business closures, reverse the trend and defend the choice and diversity customers deserve. Visit www.fsb.org.uk/keeptradelocal

Contacts:

Stephen Alambritis: 020 7592 8112 / 07788 422155
Sophie Kummer: 020 7592 8128 / 07917 628998
Prue Watson: 020 7592 8121 / 07825 125695
Marc Shoffman: 020 7592 8113 / 07595 067068

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