The Federation of Small Businesses (FSB) has recently shown its concern that small businesses should have more of a say where their taxes are spent.

The FBS is worried about the new Business Rate Supplement Bill, which may put heavier tax-related burdens on businesses. They have gone so far as to suggest some amendments to the Bill in order to make the new rules less potentially harmful to smaller firms in particular.

The FSB is insisting that small companies in particular should have some sort of say on all projects that will be subsidised by a tax brought in by the Business Rate Supplements Bill.

The grey areas…

The Public Bills Committee and the FSB are both currently looking at a number of grey areas in the Bill that could have a harmful impact on businesses. These areas include:

• a guarantee that the new tax supplement will only be spent on economic development;

• that businesses should be consulted and have some say in all supplements, and an independent review should be conducted into how the money should be spent;

• that the public sector will also contribute to the Bill;

• exceptions will be made for properties liable for business rates with a rateable value of £50,000 or lower;

• that the £50,000 threshold will be considered again and possibly increased as the property market improves again.

What the FSB Chairman had to say…

FSB Chairman, John Wright has said: “Cash flow is king for small businesses who want to hold on to and train their staff- and grow their enterprises during these recessionary times. With small business failures entering their hundreds each day and taking thousands of jobs with them, it seems counterproductive to introduce a new tax.

“However, if business owners are to pay this supplement it is important that they have a say on where it goes. This revenue must be ring-fenced for economic development rather than to shore up Government infrastructure projects and local council budgets.

“There must be safeguards in this legislation to ensure the small business community is represented and can benefit from this supplement.”

Have Your Say.

What do you think about the Business Rate Supplement Bill? Will it do more harm than help? How will it affect your company? Leave your comments here.

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