Small businesses should not foot relief bill

Date: 9th July 2009

Small businesses should not be liable to an increase in the business rate, according to Smallbusiness.co.uk.

The call comes after the government announced plans for a £2 billion redistribution scheme, whereby money collected from business rates is split amongst companies depending on need.

Some companies would see their rates increase in order for this to work.

A spokesperson from Smallbusiness.co.uk said that this was unjust and that it should be the larger companies footing the bill rather than a small collection of smaller firms.

She said: "With the problems [small businesses] are already facing, they shouldn't be liable to increases.

"If the burden of higher rates should fall anywhere at all, it only seems fair that it should be on the larger companies who have more scope to absorb the costs."

The proposed scheme is the result of a five yearly revaluation of business property. It is expected 60 per cent of small firms would see their rate bills reduce.