FSB calls for Government to end delays in business rate relief fund

The Federation of Small Businesses (FSB) has called on Communities Secretary Sajid Javid to provide a letter of direction to local councils in England to speed up help for small firms facing unacceptable increases in their Business Rates. £300 million in discretionary relief was promised in the Budget in March, yet many local authorities have so far failed to design their local distribution system, let alone pass it on to struggling businesses.

A letter from FSB sent directly to Mr Javid urges the Government to get a grip on the situation and make sure local authorities start allocating the relief without any further delay. All small businesses with the highest rises this year must get the help the Chancellor and Communities Secretary intended when announcing this in the Spring Budget.

Over half a million firms will see a rise in their business rate bills. More than a fifth of affected businesses expect their bills to rise by over 40 per cent, according to FSB research carried out earlier this year. A letter of direction must be sent out to local authorities telling them they must urgently implement schemes, so that rate relief can reach businesses as soon as possible.

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.”