SMEs facing “unacceptable” business rate increases, says FSB

The Federation of Small Businesses (FSB) has called on Local Government secretary Sajid Javid to speed up help for small firms “facing unacceptable increases” in business rates.

The Federation represents around 160,000 small and medium-sized enterprises (SMEs).

The letter addressed to Parliament refers to the £300 million discretionary relief promised in this year’s Budget. However, according to the FSB, many local authorities have yet to design their local distribution system, “let alone pass it on to struggling businesses”.

It urges the Government to “get a grip” on the situation and make sure local authorities begin allocating relief without any further delay.

The FSB suggested that more than half a million firms will see a rise in their business rates bill, with more than a fifth of affected businesses expecting to see their bills rise by over 40 per cent.

Martin McTague, FSB Policy Director, said: “Small businesses across the country are still waiting for the promised £300 million hardship fund to materialise. Local authorities have known their allocation since April, yet it’s likely most will not have schemes in place until August or September at the earliest.

“This shambolic delay means some small businesses are being left with no choice but to delay investment, avoid taking on staff or even close their doors, while they are waiting for this assistance.

“The Government needs to take control of the situation and instruct local councils to get on with the job so that the relief can reach those struggling businesses most in need.”