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FSB Urges Chancellor to Expand Business Rate Relief for Small Firm Growth

Prime Highlights-

  • FSB urges Chancellor to expand Small Business Rate Relief in Budget so more small firms invest, hire and grow.
  • FSB seeks a £25,000 rateable value threshold, which would exempt at least 250,000 more small businesses from paying business rates.

Key Facts-

  • 28 percent of small employers would hire more staff if rate relief expanded, FSB data shows.
  • FSB also seeks Employment Allowance indexed to the National Living Wage and a £100,000 VAT threshold.

Background-

The Federation of Small Businesses (FSB) has urged the Chancellor to expand business rate relief in the upcoming Budget to help more small firms invest, hire and grow.

Small Business Rate Relief (SBRR) gives a 100 percent discount on business rates for English properties with a rateable value up to £12,000, with tapered relief up to £15,000. The FSB wants the threshold raised to £25,000, exempting at least 250,000 more small businesses.

New FSB data shows 28 percent of small employers would hire more staff if SBRR expanded, and 11 percent of sole traders would consider a first employee. Another 26 percent would raise pay or benefits, and 36 percent call SBRR essential or important.

The group also wants the Employment Allowance indexed to the National Living Wage, so small firms can keep hiring young people and those with health challenges.

Other proposals include a £100,000 VAT registration threshold, Business Asset Disposal Relief at 14 percent, a 75 percent cut in Renewables Obligation costs on small business energy bills and a Statutory Sick Pay rebate.

FSB National Chair Tina McKenzie said the Budget offers a chance for meaningful action that backs small firms and the self-employed, crucial to the economy. She said a tax system that rewards ambition would give businesses a clear reason to invest, hire and grow.

McKenzie said the Budget will be an early test of the new Government’s commitment to small business owners, and growth follows when ministers back expansion.

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