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Gloucestershire Business News

Small business owners sent to prison over business rates

One small UK business owner a week is going to jail over non-payment of business rates.

The message from government to business owners is clear - pay up or face the consequences of up to 90 days in prison.

According to new data compiled by CVS for the Press Association, 54 business owners were sent to prison for failing to pay their business rates in the year to the end of March, as reported by Retail Gazette. 

While limited companies face liquidation if they are unable to pay the new rates, sole traders and self-employed businesses face a disproportionate financial and legal burden because the tax isn't linked to an ability to pay.

But there is the means to help these small businesses, which isn't yet being widely used. The government pledged £300 million to a relief fund to help those businesses most affected, but just two out of nearly 100 local councils have paid out so far.

Now the government has pledged to publish the names of councils that have paid out - which will also reveal those that haven't. The move has been welcomed by the FSB.

Mike Cherry, Federation of Small Businesses (FSB) National Chairman, said: "We have been calling for Ministerial intervention to unblock the emergency hardship relief, announced at the previous Budget to help those businesses most affected by the 2017 revaluation. The relief could be the difference between surviving and shutting up shop for many small businesses.

"Small businesses right across the country will welcome today's announcement to name local authorities that have distributed the funds to businesses that need it. Crucially, this will also reveal any that have not.

"We hope this threat to publish will lead to all England and Wales Councils to be included on the Minister's list in three weeks' time. Today, I call on every council to get their house in order. It beggars belief that pledges made at one Budget may not be not delivered by the next one.'

What do you think? Email mark@moosemarketingandpr.co.uk 

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