UK business leaders are calling for decisive action to support struggling small firms.
The Lancashire-headquartered Federation of Small Business (FSB) is calling for a major reduction in business rates bills for small firms, as thousands struggle to stay afloat amid spiralling operating costs.
It is calling for the ‘Retail Discount’ – which allows small retailers with rateable values of up to £51,000 to claim a 33 per cent discount on their rates bills – to be increased to at least 50 per cent.
And it wants the support to be made permanent and extended to small firms operating in other sectors, including manufacturing.
The organisation is also calling for the threshold for Small Business Rates Relief to be increased from £12,000 to at least £30,000.
The FSB has been arguing for wider business rate reform as confidence among small businesses falls and costs spiral.
Responding to ONS figures showing monthly retail sales were flat (0.0 per cent) in September, FSB national chairman Mike Cherry said: “The latest retail sales figures reflect a difficult year for the sector, and demonstrate the struggles our high street firms are currently facing.
“Confidence among small retailers remains low, with pressure from employment costs, high rents and competition from large, exclusively online brands.
He added: “While the retail rates discounts this year have been welcomed, these will soon come to an end – leaving us with a system that remains regressive and is not linked to a business’ ability to pay.
“Given the pressure on small businesses, improving the relief by increasing the 33 per cent discount to 50 per cent or more, making it permanent – and indeed extending it to include small firms across the economy, would help revitalise and reform town centres.”
The organisation also says small business want to see “a significant uprating” of the small business discount on national insurance bills available through the Employment Allowance.”
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