Small businesses such as cafes, shops and hairdressers are facing three years of
business rates misery with an average 52% hike in bills, analysis from the
Federation of Small Businesses (FSB) has revealed.
This is due to the removal of business rates relief for 230,000 small firms
across the retail, hospitality and leisure (RHL) sectors in England.
The removal of the relief combined with other business rates changes being
introduced by the government from this April, leaves many having to pay
thousands of pounds extra, says the FSB.
In a letter to the Government, FSB has urged ministers to deploy the full relief
available to them for small firms in RHL. Currently, only a quarter of the
potential relief included in the government's own formula is being used.
FSB Policy Chair Tina McKenzie said:
'Striving small businesses in retail, hospitality and leisure - from bakeries
and coffee shops to garden centres, gyms and dry cleaners - are on the brink
unless Chancellor makes a decisive intervention now.
'The tax timebomb that's currently ticking will see three years of soaring
bills, threatening our high streets and the jobs and services they
provide.
'Combined with other cost pressures going up in April as well, the Chancellor
has to be realistic that without action on business rates relief, the burden
will become too much to bear for some, who will either shrink or close down
altogether.'
Internet link: FSB