Business News
New Woes for Small Businesses as Rate Relief Cut
2011 looks to be a tougher year still for small businesses as the Government plans to cut the Business Rate threshold on empty properties held by small business landlords from £18,000 to just £2,600. Add to this the fact that the Government will not be re-introducing a 50% relief on this, and small businesses will no longer be able to claim Small Business Rate Relief on their empty properties, and it is guaranteed that tougher times are ahead.
Many of these businesses have had to vacate their properties due to financial difficulties; this new cut in relief could mean they may wind up paying more for the empty premises in rates than they would have practicing their business in the property.
In light of this, and the obvious financial burden forecast for small businesses off the back of these cuts, the Federation of Small Businesses (FSB) has written to local Government Minister, Bob Neill MP expressing their concerns. They have called for a return of the aforementioned 50% relief granted pre-April 2008, and the opportunity for businesses to claim for Rate Relief on their properties.
Roger Culcheth, Local Government Policy Chairman, Federation of Small Businesses, said:
"The Government has said that small businesses have a vital role in driving economic growth and getting the recovery on a firm footing, yet for some businesses, this additional tax could tip the balance and force them into insolvency.
"The result of this cut in the threshold without restoring the 50 per cent relief will make small business owners worse off than they were prior the 2009 change and significantly more so then they were in 2009 and 2010. We urge the Government to look closely at this matter and, at the very least, allow the business to claim Small Business Rate Relief."
