7th July 2017
The Federation of Small Businesses (FSB) has called on the government to speed up the funding process for small firms impacted by the rise of business rates.
The most recent business rates revaluation came into effect on 1 April 2017.
A business coming out of small rate relief will not face an increase of more than £600 on the previous tax year.
A £300 million fund was allocated to local authorities to provide help to firms affected by the changes.
London authorities have been allocated £124 million out of the £300 million pot, with £72.5 million billed this year.
Funding for authorities in London will drop to £35.2 million in 2018/19, £14.5 million in 2019/20 and £2 million in 2020/21.
However, out-of-date software, consulting with ratepayers and recalculating bills has delayed the implementation of the relief schemes.
74% of London businesses said business rates were their biggest concern.
Sue Terpilowski OBE, London policy chair at FSB, said:
“We are urging the secretary of state to write to all councils and for the mayor of London to put similar pressure on London councils to get this funding out of the door as many have seen punishing increases in their business rates bills this year.
“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.”
Contact us to discuss how these changes may affect your business.