Rate relief plans get major MP support

More than a 100 MPs have backed a campaign for a new rate relief Bill to help small businesses, including pubs, by signing an early day motion which calls for relief to be granted automatically.

The Private Members Bill is set to be debated in the House of Commons today (Friday).

The Federation of Small Businesses (FSB) pioneered the motion, which was tabled by Conservative MP Peter Luff, chairman of the Business and Enterprise Committee on The Small Business Rate Relief Bill.

Mr Luff said: "I am delighted at the strong and growing support the Bill is gaining both in the House of Commons and in the wider world; it shows how many people and organisations agree that it is an important measure that could really make the difference for many small businesses."

According to the FSB, business rates are the third largest cost to small firms, after salaries and rent.

Exemption from paying business rates, which happens automatically in Wales, could be worth up to £1,200 but many small businesses are unaware they are entitled to rate relief.

The FSB estimates that around £400 million goes unclaimed every year, even though this money poses no extra cost to the Government or tax payer.

John Wright, national chairman of the FSB, said: "After rent and wages, rates are the biggest cost to a business and automatically getting the relief they are entitled to would be extremely welcome.

"During the recession, this cash injection could save many small businesses from laying off staff or closing down completely."