Member Article

'Voice needed' for small businesses

The forthcoming Business Rate Supplement Bill is set to impose extra tax burdens on North East businesses, according to the Federation of Small Businesses.

The FSB is worried that the new bill will be detrimental to the survivability of businesses in the region, and is suggesting a series of amendments and consultations with SMEs in order to soften the blow.

In particular the FSB is arguing that small businesses must have a say on all projects to be subsidised by a tax which is going to be brought in by the Business Rate Supplements Bill.

The new tax is currently being considered by a Public Bills Committee and the FSB is looking for guarantees that the supplement will only be spent on economic development; that businesses will be consulted and have a vote on all supplements followed by an independent review on how the money is spent; that the public sector will also contribute; properties liable for business rates with a rateable value of £50,000 or less will be exempt; and the £50,000 threshold will be reconsidered when the property market improves.

Colin Stratton, FSB Regional Chairman for the North East of England, said: “We have been fortunate that in the North East our small business community have battled through some testing times with great vigour and success, therefore it seems ultimately counterproductive to introduce any new tax.

“However, if our North East business owners are to pay this supplement it is important that they have a major say on where it goes. This revenue must be ring-fenced for economic development rather than to shore up Government infrastructure projects and local council budgets. There must be safeguards in this legislation to ensure the small business community is represented and can benefit from this supplement.”

This was posted in Bdaily's Members' News section by Ruth Mitchell .