FSB calls for help for independent retailers facing closure

Date: 8th July 2009

The Federation of Small Businesses (FSB) has released a report calling for small community businesses to receive the help they are entitled to and avoid closure.

The report follows news this week that one of the UK's leading agricultural shows will be closing this week after 160 years.

It was highlighted that although small rural businesses are entitled to anything up to 100 per cent business rate relief under the Rural Rate Relief scheme and Local Authority assistance, 47 per cent of those entitled are currently not benefitting.

Local Authorities have the discretionary power to bumper business rate relief up from 50 per cent to 100 per cent for those businesses that need it, but according to the FSB this is not occurring enough and some businesses are not receiving the essential help they need in order to survive.

Linda Walton, rural affairs and tourism chairman of the FSB, said: "Every week we hear of the death of village shops and pubs yet the Rural Rate Relief scheme, which was specifically set up to help these rural businesses, is being chronically underused.

"[The] Treasury must ensure our village shops and pubs do not go the same way as the Royal Show by enabling our local authorities to give 100 per cent rate relief during this downturn."

The village shop network is losing between 300 and 500 shops each year.