Small firms 'struggling' to pay business rates

Date: 4th November 2008

Small business start-ups are struggling to make payments of corporate rates to local authorities, research has revealed.

An investigation by the Local Government Association (LGA) found that over half of all councils in England and Wales had reported smaller companies have difficulty in paying business taxation.

The study also discovered that one in three local authorities had seen an uptake in small business rate relief, which can ease the burden of taxation on companies.

Chairman of the LGA, Margaret Eaton, said: "Businesses around the country are beginning to feel the impact of the downturn, in what is likely to be a tough time for everyone.

"Town halls will do all they can to keep small businesses going through tough financial times ahead."

The LGA has also called on central government to give local authorities more power over corporate taxation rates, which would allow councils to use their discretion to give help to business start-ups experiencing trouble.

To find out more about how to apply for small business rate relief, companies should consult an accountancy firm.