The Forum of Private Business (FPB) has slammed the government for failing to significantly increase business rate relief for small firms in England and Wales.
After a consultation on the issue, Nick Raynsford, the local government minister, decided that rate relief will be available at 50 per cent for business properties up to £5,000, as compared to £3,000 previously.
The new relief will decline on a sliding scale as Rateable Value (RV) increases up to £10,000. This effectively adds just £2,000 to each of these thresholds.
The FPB attacked Raynsford for not doing enough to assist small firms, despite the minister’s acknowledgement that the current system places a “disproportionate burden on small businesses.”
The business lobby group said that is was also disappointed that the government didn’t introduce comparative thresholds to the system in Scotland, to avoid creating an unfair competitive advantage for firms north of the border.
Andy Mowlah, head of research at the FPB, said that Raynsford had done much too little.
“The average business rate payer will still lose out as research commissioned by the Small Business Research Trust has indicated that the average RV for small businesses in England and Wales stands at £15,375 per annum.
“Under these circumstances FPB believe that the proposed system is not good enough and will give unfair advantage to Scottish businesses.
“The government have seriously let small businesses down by creating a buffer zone incomparable to that implemented in Scotland,” he said.
