Rate relief red tape cut

Licensees applying for small business rate relief on their property should have an easier time of it thanks to a reduction in red tape.

At present small businesses are required to apply every year for rate relief.

But in an order laid before parliament, businesses whose circumstances do not change will only need to apply once, for a period of up to five years.

Under the revised scheme, ratepayers eligible for the relief will be required to apply for small business rate relief for the financial year 2007/8 and will not be required until the next revaluation - financial year 2010/11.

Local Government minister Phil Woolas said: "I am pleased that we have been able to deliver our commitment to remove the administrative burden of applying every year for small business rate relief.

"The introduction of the small business rate relief scheme in April 2005 helped to alleviate the burden of business rates on small businesses and I hope today's announcement will demonstrate our recognition of the important role small businesses play in contributing to a healthy economy."

Small Business minister Margaret Hodge MP said: "This is great news for the 400,000 small businesses using this scheme. This is a good example of government listening to business, cutting red tape and providing the best possible conditions for business success in today's global economy."

Tony Payne, chief executive of the Federation of Licensed Victuallers' Associations, said he welcomed the move. He added: "It's a good idea, with all the other regualtions now facing licensees anything that saves them time having to fill out forms is a positive thing."