Claiming the government has "no more excuses", the Federation of Small Businesses (FSB) has issued a pre-emptive strike on impending law over business rates.

While the government's Non-Domestic Business Rating Bill, published yesterday, might signal more frequent revaluation and exemption for improvements, the FSB is demanding Secretary of State for Levelling Up, Housing and Communities Michael Gove recognises the business rates system requires a fundamental overhaul.

Responding to its implications, the FSB says the bill risks tinkering at a lost opportunity for a fundamental overhaul.

Martin McTague, national chair of the FSB said: "Today's legislation makes good on useful moderate changes promised to the business rates system in England. However, overall the proposals are necessary but not sufficient.

"Moving to more frequent revaluations will prevent the existing problems of the tax system falling behind the economic situation at the time, with the government piling on CPI inflationary increases each year in between revaluations. The aim now should be to move the system to an annual assessment, requiring significant modernisation of the VOA (Valuation Office Agency).

"The FSB campaigned strongly for net zero and other investments by a small business into its premises to be exempt from business rates, to avoid the perverse disincentive of increased bills after doing the right thing. So we are also really pleased to see that set out, today."

But he warned: "The 2019 Manifesto commitment to hold a fundamental downward review of business rates has not happened. And as a result, these changes do not amount to the fundamental overhaul the system needs, to reduce the chilling impact of a regressive tax that you pay before even earning a penny in turnover, let alone profit.

"After Brexit, Covid and the energy crisis taking up ministerial bandwidth, there are no more excuses and we want to see this review delivered, as promised, before the end of this parliament.

"As Secretary of State for Levelling Up, we are asking Michael Gove to see the local economic benefits of cutting business rates, to unleash a local economic growth dividend across the country as businesses in our communities are freed up to invest, recruit or expand.

"The best way to do this," said Mr McTague, "would be to increase the threshold for Small Business Rates Relief and Rural Rates Relief to £25,000, removing thousands of small businesses out of the bottom of the tax altogether."

Gloucester's Chamber of Trade says  its with the FSB all the way.

Luke Lutman, CoT president and director of Phoenix Consultants, said: "Anything that can help make Gloucester's city centre more viable for small business would be welcome. At the moment, there are so many empty shops because, with the rates as they are, they are simply not viable. It's bringing the look of the centre down and shoppers have far less choice."

Punchline says: It's compelling to listen to the FSB's argument here, and its key point that, as Luke Lutman points out for Gloucester city centre alone, fundamental change to the business rating system would unlock a dividend for local economic growth. Against our reported backdrop  of disappearing relief on energy bills for April 1st, isn't it stark logic that we make this change and free-up Gloucestershire's small businesses so they can operate in a kinder climate?