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Product category: Building Trade Associations and Institutes
News Release from: Federation of Master Builders (FMB) | Subject: Local control over business rates
Edited by the Buildingtalk Editorial Team on 05 October 2006

FSB opposes local control over business
rates

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The Federation of Small Businesses launched a petition campaign against possible proposals to restore local authority control over business rates.

The Federation of Small Businesses (FSB) today launched a petition campaign across England and Wales to demonstrate the strength of feeling amongst 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, due for publication in December, will be that business rates will revert to local authority control

The FSB campaign will seek to gather business signatures, from the FSB's 195,000 members and beyond into 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.

Prior to 1990, local government set business rate levels for their own area.

This led 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, said: "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.".

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