Member News
Conservative MP Peter Luff, chairman of the Commons business committee, sets out the case for his Small Business Rate Relief (Automatic Payment) Bill.
Small businesses are the backbone of our economy. But because of their size they are particularly vulnerable as the recession begins to tighten its grip.
Statistics collected in 2008 – before the recession really kicked in – revealed that 2000 local shops are closing each year, along with 27 pubs a week. With the economic situation set to get worse before it gets better, I believe we should be acting to stem the tide and save as many small businesses as possible.
My Bill - the Small Business Rate Relief (Automatic Payment) Bill - is designed to help these small businesses. It is not an attempt to cure all their problems, but if adopted it would be a reinforcement of their defences against the economic downturn.
It is a simple Bill with a simple aim; to ensure small businesses struggling in the recession actually get the help that they are entitled to by law.
Currently, over half of small businesses are not claiming the relief they are entitled to, perhaps because they don't know about it, or find the process too confusing.
For most small businesses, the rates bill is the third biggest expenditure after wages and rents and it must be paid irrespective of whether the business is making a profit.
My Bill would make payment of relief automatic to all qualifying businesses.
The Bill could save small businesses as much as £1,200 a year – not in itself a huge sum, but critical for many of them. This seemingly small amount can literally mean the difference between survival and failure for these firms. It can pay for staff training or promotional material to secure more work, for instance.
If my Bill passes its second reading on Friday, and goes on to become law, it will bring England into line with Wales and will give an extra line of defence to many small businesses which would otherwise be left more exposed and threatened by the recession than they need be.
Dods Parliamentary Communications Ltd