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The Federation of Small Businesses (FSB) has launched campaign to demonstrate
the strength of feeling across the business community against possible proposals
to restore local authority control over business rates.
The government has asked Sir Michael Lyons to review the funding of local
government finance and rumours abound that one recommendation in Sir Michael’s
report could be that business rates will revert to local authority control.
The campaign will gather business signatures from the FSB’s members as well as
the wider business community to ensure that the government does not put at risk
jobs that depend on small business success by going back to a discredited system
of local business taxation.
Until 1990, local government set business rate levels for their own area,
leading to wide discrepancies between councils.
Businesses, often based very close to each other but across council
boundaries, paid very different rates with the result being distorted competition
between firms on a solely geographical basis.
Roger Culcheth, FSB local government policy Chairman, commented: “Our members
have long memories and they remember the dark days of the 1980s when some local
authorities hammered businesses with outrageous rises in their rates.
"We urge all concerned businesses to sign the petition to protect their
interests.
“Sir Michael Lyons has been given a difficult task but we ask him not to
recommend measures which will be devastating to businesses.
"Small firms employ over 12 million people and the success of the UK economy is
built on their continued growth.
“The business rates system is far from perfect but having it set at national
level ensures that it is a national issue.
"To allow local government to go back to the bad old days will threaten future
economic growth and employment levels.
"That is surely not in anyone’s best interests.”
Source:
RedAlert
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