Several business groups have joined forces to urge the government to rethink its plans for the introduction of supplementary business rates (SBR).
The move follows the launch of a white paper on the issue in last week’s pre-Budget report by Alistair Darling.
The Federation of Small Businesses (FSB), the British Chambers of Commerce (BCC) and the Institute of Directors (IoD) set out their oppositions to the scheme at an event in the House of Commons.
The supplementary tax would be used to fund major infrastructure projects such as city tramways and rail systems. However, business lobby groups feel it would be open to abuse by local authorities, who may use it to charge for projects already budgeted for.
“Business is opposed to the introduction of a supplementary business rate,” said
David Frost, BCC director general.
“UK companies are facing enormous global competitive pressures and any additional tax will further harm their ability to compete.
“If, however, local authorities are given the flexibility to introduce a SBR it is essential that businesses are given a vote.”
As well as offering businesses a vote on the SBRs, should they be introduced, the lobby groups have also called on the government to remove the need for applications for firms who are exempt from the rate.
The groups are also calling for any
rate revenue to be ring-fenced for specific infrastructure projects.
© Crimson Business Ltd. 2007
