Rate relief could soon be automatic for eligible firms, lobby groups claim.
The Federation of Small Businesses (FSB) is calling for automatic rate relief for eligible small firms.
A private members bill, pioneered by the FSB as an Early Day Motion, has been signed by over 100 MPs.
Exemption from paying business rates – which already happens automatically in Wales – could help businesses with their cashflow, and save them up to £1,200.
John Wright, national chairman of the FSB, 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.
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 £400m goes unclaimed, even though this money poses no extra cost to the government or tax payer.
The Bill will be debated in the House of Commons on Friday March 6.
© Crimson Business Ltd, 2009
