Warning of extra tax burden if Bill is passed

Feb 3 2009 by Karen Dent, The Journal

SMALL firms in the region are being warned they are likely to face extra tax burdens if the new Business Rate Supplements Bill is passed in its present form.

A number of amendments have been suggested by the Federation of Small Businesses, which wants the Government to consult with the SME community about the proposals included in the Bill. It wants small firms to have a say on all projects which would be subsidised by a tax levied as part of the forthcoming legislation. The FSB is calling for guarantees that this money will be ring-fenced for economic development.

It is also demanding that businesses are consulted and be given a vote on all supplements followed by an independent review on how the money is spent. The FSB said the public sector must also contribute to the tax.

In addition, the organisation is demanding that properties liable for business rates with a rateable value of £50,000 or less will be exempt.

FSB North East regional chairman Colin Stratton said: “We are very concerned that little to no consideration and consultation has been given to our SME community here in the North East.

“We have been fortunate that in the North East our small business community have battled through some testing times with great vigour and success. Therefore it seems ultimately counterproductive to introduce any new tax.”