The Federation of Small Businesses (FSB) has warned that small firms that have empty properties could have to pay thousands extra in business rates with changes to the exemption from paying empty property rates due to come into force from April.
The exemption, introduced in 2009, meant that businesses with an empty property in England with a rateable value below £18,000 did not have to pay business rates. The government is to cut this threshold from £18,000 to just £2,600.
On top of this, the government will not re-introduce a 50% relief and that small firms will not be able to claim Small Business Rate Relief on the property.
This means that business owners who have had to vacate a property and cannot rent or sell it will have to pay more in rates than if they were running a company from the property.
The FSB has written to local government minister, Bob Neill MP, to express its concerns that this move could put some small firms out of business. If the threshold is going to be cut then the FSB wants a return to the pre-April 2008 situation of granting 50% relief or at the very least, allow a business to claim Small Business Rate Relief on their empty property.
Roger Culcheth, local government policy chairman, Federation of Small Businesses, said: “The Government has said that small businesses have a vital role in driving economic growth and getting the recovery on a firm footing
