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FSB encourage Council’s to take a measured approach to development

The Federation of Small Businesses is encouraging local government to take a measured attitude to development, or risk lasting damage to the region’s economy.

The FSB issues the statement in response to the Local Government Resource Review, which looks at the way local authorities in England are financed. The review has suggested that councils should be allowed to keep additional business rates they generate through economic growth – so more businesses would mean more income for the region.

While the FSB is supportive of a scheme, which would incentivise business growth, they also fear that this could focus on large scale out of town developments, rather than small business growth.

The FSB is also concerned that the proposals could even dissuade local councils from promoting and utilising small business reliefs. The system would mean councils would receive the same amount of money annually until the system is reset, regardless of how many businesses they help.

Ted Salmon, FSB North East Regional Vice Chairman, said: “We have said from the start that the reliefs that are available to small businesses in the North East must continue to be funded by the Government so that local authorities still have a reason to promote them.

“While this is happening, we are concerned that the current proposals would see them receive the same amount each year – irrespective of if they had increased the number of businesses that could claim rates relief.”

Mr Salmon called on the government to reward councils who promote small business growth through a Small Business Bonus scheme, which could be funded out of business revenue rates surpluses.

He added: “The whole focus of this scheme should be to encourage councils to promote long term sustainable economic growth.

“This can only be done if it is built upon a bedrock of stronger small businesses and through encouraging the creation of new firms.”

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