Rate relief 'should be automatic for small firms'
Jan 16 2009
Businesses rate relief for small companies should be granted automatically under a new private member's bill, according to the Federation of Small Businesses (FSB).
The organisation is working with Peter Luff, conservative MP for mid Worcestershire and chairman of the business and enterprise committee, to create the new legislation.
Introduction of the small business rate relief (automatic payment) bill means firms will automatically be granted relief rather than having to apply for it.
Small business rate relief is granted to a company where the rateable value of their premises is less than £15,000, or £21,500 in London, with the level of relief depending on the value of the property.
The FSB states over half of small firms miss out on the relief as they do not know about it, so the introduction of the legislation would mean extra money for many businesses.
Luff says: 'Making these payments automatic would ensure the money gets directly to those who need it. It will be a boost to small businesses and even cut administrative costs for the local authorities that promote the availability of the rate relief.'
He says after wages and rents the rates are the third largest item of expenditure for small firms.
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