Businesses that were worst affected by April’s rates hike were told at the time that they would share £300 million of relief. Nine months on, the local authorities are yet to start distributing their regions’ share of the funds.
Mike Cherry, chairman of the Federation of Small Businesses, has shown much indignation at the slow response of these local authorities. Cherry called it “completely unacceptable” and feared the damage these delays could do to the businesses.
Business rates, the tax on commercial property that brings in about £29 billion a year, was increased for the first time in seven years in April, resulting in increased bills for many.
Any cash that isn’t distributed may no longer be available to businesses after next March. Mr Cherry urges that councils tackle the problem sooner rather than later and before everything closes for the festive break.
A Local Government Association spokesman challenged the FSB’s objections and indicated that 85 percent of councils had already distributed the relief. “While this has been a complex exercise compounded by delays out their control, councils have worked hard to launch schemes in their areas as quickly as possible,” he said.
Nonetheless, there are still overwhelming numbers of small businesses without aid, potentially remaining as such throughout Christmas. Jerry Schurder, head of business rates at Gerald Eve, was particularly angry towards these “outrageous” delays”, accusing the Government of outsourcing the problem in search of some “cheap headlines”.
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