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Rate Relief

FSB calls for Sajid Javid to end delays in business rate relief fund


The Federation of Small Businesses (FSB) has called on Communities Secretary Sajid Javid to provide a letter of direction to local councils in England to speed up help for small firms facing unacceptable increases in their Business Rates.


£300million in discretionary relief was promised in the Budget in March, yet many local authorities have so far failed to design their local distribution system, let alone pass it on to struggling businesses.

Councils across the south east are expected to receive more than £40million from the fund over the next five years to help firms hardest hit by April’s revaluation. Expectations are that Medway (£900,000), Tonbridge & Malling (£600,000) and Tunbridge Wells (£450,000) councils will gain.     

 
A letter from FSB sent directly to Mr Javid urges the Government to get a grip on the situation and make sure local authorities start allocating the relief without any further delay. All small businesses with the highest rises this year must get the help the Chancellor and Communities Secretary intended when announcing this in the Spring Budget.


Over half a million firms will see a rise in their business rates bills. Four in ten (39%) small firms across the south east expect their bills to increase, according to FSB research carried out earlier this year.

A letter of direction must be sent out to local authorities telling them they must urgently implement schemes, so that rate relief can reach businesses as soon as possible.

Martin McTague, FSB Policy Director, said: “Small businesses across the country are still waiting for the promised £300 million hardship fund to materialise. Local authorities have known their allocation since April, yet it’s likely most will not have schemes in place until August or September at the earliest. This shambolic delay means some small businesses are being left with no choice but to delay investment, avoid taking on staff or even close their doors, while they are waiting for this assistance.


“The Government needs to take control of the situation and instruct local councils to get on with the job so that the relief can reach those struggling businesses most in need.”

 

Alison Parmar, FSB Kent Development Manager, said “I have had numerous calls from businesses –  from yoga firms to community-run pubs – who are worried about their dramatic rates increase. Many have had to accommodate rises of between 10% to 50% on their business rates with little warning. We need to support these firms. The discretionary rates relief is one way we can make sure our independent companies continue and offer us choice and diversity in our towns.”