Skip navigation

Gloucestershire Business News

Government urged to end "shambolic delay" over rates relief

Business leaders have called on Communities Secretary Sajid Javid to direct local councils to speed up help for small firms facing unacceptable increases in their Business Rates.

£300 million 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.

The Federation of Small Businesses (FSB) has asked Mr Javid 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 rate bills. More than a fifth of affected businesses expect their bills to rise by over 40 per cent, according to FSB research carried out earlier this year.

The FSB says 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."

Ian Sloan of Moreton-in-Marsh chartered surveyors Bankier Sloan said: "This year's rates increases for all small companies are limited to seven per cent under Government legislation via the Transitional Rates Relief Scheme announced in April 2016, and this has been implemented for most businesses.

"What hasn't yet been implemented is the restriction on the increase brought in to help that small business whose increase was set to be more than £50 / month. If the business was able to claim Small Business Rates Relief prior to April 2017 the increase was restricted to £50 /week.

" Cotswold Council have we understand started to implement these arrangement to the benefit of many small businesses and at no cost to the council.

Bankier Sloan's updated report which includes a helpful Q and A section, on the latest relief schemes can be found at www.centre-p.co.uk/Small_Business_Rates_Relief_2.pdf

Mr Sloan added: " Businesses who have never claimed under the pre-April 2016 scheme have just under 90 days left to claim as this comes to an end on 30th September this year."

Related Articles

Pretty as a picture: investors snap up art gallery Image

Pretty as a picture: investors snap up art gallery

Move follows administration for 2006 Cotswold business.

Government borrowing higher than forecast Image

Government borrowing higher than forecast

Government borrowing was higher than forecast in the last financial year, according to official figures.

Proud of the shirt! Women's team scores with England scouts Image

Proud of the shirt! Women's team scores with England scouts

Punchline-sponsored squad pitches in for Women's Super League.

Asda profits top £1bn Image

Asda profits top £1bn

Asda profits were up by 24% in 2023.

Copyright 2024 Moose Partnership Ltd. All rights reserved. Reproduction of any content is strictly forbidden without prior permission.