smallbusiness.co.uk: Helping your business think big

Small local enterprises need urgent support to help them claim relief from business rates, says the Federation of Small Businesses (FSB).

Village enterprises such as shops, pubs, post offices and petrol stations are entitled to pay just half of business rates under the rural rate relief scheme, although FSB research suggests that 47 per cent are failing to claim this.

In addition, local authorities have discretionary powers to increase this to a full exemption but many choose not to, leading the FSB to call on them to extend this lifeline to reduce burdens on small businesses.

Linda Walton, rural affairs and tourism chairman at the FSB, comments: '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.'

Other measures suggested by the organisation include an overhaul of the planning system to promote a diverse business community in rural economies and more incentives for local authorities to promote tourism.

Last week, groups including regional development agency Advantage West Midlands and Business Link told the Rural Regeneration Zone annual conference that rural firms can play an important part in supporting economic recovery.

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