Support growing for automatic taxation relief

Date: 27th February 2009

Parliamentary support is growing for a bill which would ensure businesses receive automatic taxation relief.

The Private Members Bill introduced by Conservative MP Peter Luff now has the support of more than 100 House of Commons members.

If the legislation were to come into effect, small businesses could save up to £400 million every year by way of national non-domestic rates relief.

National chairman of the Federation of Small Businesses, John Wright, commented: "After rent and wages, rates are the biggest cost to a business and automatically getting the relief they are entitled to would be extremely welcome.

"During the recession, this cash injection could save many small businesses from laying off staff or closing down completely."

Automatic exemption from business taxation for eligible firms is already in place in Wales.

Enterprises were given an additional taxation boost this week after HM Revenue and Customs announced a series of support videos for business start-ups.