Home Business News Government must extend business rates relief to 2022

Government must extend business rates relief to 2022

by LLB political Reporter
8th Feb 21 9:25 am

Small businesses right across England are soon set to see their business rates bills reimposed with the Business Rates Relief set to end in April. The Federation of Small Businesses (FSB) is calling on the government to:

  • Extend the retail, hospitality and leisure 100% relief for another 12 months to April 2022
  • Establish a revenue test so business rates relief is extended to those in the supply chain who’ve been impacted by the pandemic
  • Increase the number of small businesses who are able to claim business rates relief by moving the threshold to £25,000 from £12,000

FSB National Chair Mike Cherry said, “Over the past year, small businesses right across the nation have seen their finances upended, placed staff on furlough while others have been forced to make difficult decisions about their futures. However, despite all this, and in the midst of a third national lockdown, these same small firms on the high street will now start to receive letters from their local authorities asking for business rates to be paid for the next financial year.

“For too long the business rates system has been outdated and regressive, and the ongoing pandemic has only highlighted the need for serious reform in the months ahead. But over the past few months, many small firms have benefited from the retail hospitality and leisure relief which has helped to ensure businesses don’t go under and jobs are saved.

“But with this due to end in April, and with the economic situation set to remain turbulent for many months to come, it is imperative that the Government extends this rates relief.

“However, we must also address the ongoing issue surrounding those who have been left with little support. The retail, hospitality and leisure business rates relief does not encompass the whole sector. Thousands of small businesses in the supply chain have lost the same trade, but have not been allowed to access the same relief. These small firms are struggling just as equally and need to be offered the same levels of support to safeguard their long term futures.

“In addition to this extending support to those in other sectors outside of retail, hospitality and leisure such as the manufacturing industry which will have seen orders cancelled and put on hold.

“It would be hugely unfair to slap small firms with large business rates bills at a time when many won’t see their incomes rise for months to come, which is why this extension is needed for at least another 12 months.

“Not only do we want to see the retail hospitality and leisure relief extended, but we think it is important to widen the net of those who can claim small business rates relief. Up until now, the full relief was available for those with a rateable value of up to £12,000, we want to see this widen to include those up to £25,000. This would be a genuine relief to thousands of extra firms who are struggling to make ends meet at a time of national crisis.

“Our small businesses on the high street are the beating heart of our communities and will also be crucial to the whole nation’s recovery, but slapping regressive business rates bills on them will only undo any hard work they’ve done to keep running.

“The government must make big decisions for small businesses, and this would be one important step to helping firms onto the path to recovery.”

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