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Press Release

National control over business rate levels must stay, says FSB

8 May 2006

As the inquiry into local government operation and funding continues under the chairmanship of Sir Michael Lyons, the Federation of Small Businesses (FSB) called on the Government to reject any proposals to allow local authorities to set business rate levels.

The FSB’s members were hit very hard by huge increases in business rates in the 1980s in some local areas. The situation was only remedied following a review of local government funding in 1990.

Roger Culcheth, FSB Local Government Chairman, said:

“We cannot accept a change to the current situation with regards to the setting of business rates. The Government, which claims to be committed to economic growth and supporting small firms, must hold firm and reject any recommendation that would remove national control from the setting of the Uniform Business Rate.

“Small firms remember the ridiculous increases in business rates made by some local authorities before the responsibility for setting their level was moved to national government control. Business rates tend to be the third highest cost for small firms, after wages and rents. So any large increase can put the firm at risk and threaten the jobs that depend on it.




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Federation of Small Businesses

Federation of Small Businesses

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