smallbusiness.co.uk: Helping your business think big

The UK's largest business organisation, the Federation of Small Businesses (FSB), has urged the government to drop its plans for a localised Supplementary Business Rate.

Supplementary rates, proposed by the Lyons Inquiry earlier this year, would allow local authorities to make their own additions to regional business charges.

The plans have drawn criticism from many areas, however, with some industry figures fearing businesses could unfairly feel the brunt of local council charges and the FSB has now added its concerns.

'Varying the business rate or creating a supplementary business rate is unnecessary,' says Roger Culcheth, FSB local government chairman.

'The mechanism to raise extra money from businesses for specific local projects is already in place through Business Improvement Districts, which at least allow businesses a vote on the proposals. There is no need for further schemes to take money from employers for local government expenditure, especially without their consent.

'UK businesses already face some of the highest property taxes in the world and although the current system of local business taxation may not be perfect, making it more onerous will not help employers to sustain economic growth and create new jobs.'

A Uniform Business Rate was established in 1990 specifically to stop local councils hitting businesses with above-inflation rate rises.

There are currently no comments on this article