Support for automatic rate relief grows

Over 100 MPs have thrown their support behind a campaign calling for automatic rate relief for small businesses.

The MPs have signed up to an Early Day Motion (EDM) tabled by Tory MP and chair of the Business and Enterprise Committee Peter Luff.

The Federation of Small Businesses, working with Luff to table a private member's bill, believes that small businesses could save £1,200 a year if automatic rate relief was introduced. Every year, around £400m in rate relief goes unclaimed.

"It is great to see increased support for this Bill, which demonstrates a general consensus of the importance of this relief for small businesses during these tough times," said FSB national chairman John Wright.

"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.

"Our members will be contacting their MPs to support their call for automatic rate relief - one of the key issues the FSB has been calling for in its Keep Trade Local campaign over the past year."

Luff added: "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."