MP wants automatic rate relief for pubs

Tory MP Peter Luff is to table a private members bill, which would automatically grant small businesses rate relief.

Luff, well-known in the pub industry as chair of the Business and Enterprise Committee inquiry into pubco power, is working with the Federation of Small Businesses (FSB) on the bill.

The Mid-Worcestershire MP was drawn fourth in the ballot, meaning the bill stands a good chance of getting through Parliament. The first seven drawn in the ballot usually get a day's debate.

According to Local Government Association (LGA) figures, £400m in rate relief was left unclaimed in 2006. The LGA estimates that rate relief can save businesses up to £2,500 a year. Rate relief was made automatic in Wales in April 2007.

"Making these payments automatic would ensure the money gets directly to those who need it," said Luff.

"It will be a boost to small businesses and even cut administrative costs for the local authorities that promote the availability of the rate relief. Rates are the third largest item of expenditure for small businesses after wages and rents, so this relief would make a huge difference.

"Small businesses need help, and I am convinced this is an effective way of doing that."

Chairman of the FSB's local Government committee Roger Culcheth added: "With around 85 small businesses closing a day, this move would provide vital support to businesses on the high street struggling with cashflow. It would support local economies by ensuring the survival of the high street and the jobs and services it provides."