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Small shops 'would get up to a 50% tax relief' under Tory plan
Nicholas Cecil06.03.09
Tens of thousands of small shops and firms in London would get a tax cut under a Conservative shake-up of business rates.
The Tories are proposing that small businesses would automatically benefit from relief of up to 50 per cent from the levy. They estimate that 84,000 shops and firms in London would see a drop in rates under the reforms, giving them a "fighting chance" of staying afloat.
"Small shops and businesses are facing tough times in Labour's recession," said shadow communities secretary Caroline Spelman. "These firms, from corner shops to local pubs, are the lifeblood of local communities.
Currently, most small firms are entitled to one of several reliefs if their rateable value is less than £21,500 in London and below £15,000 outside the capital.
The Tories stressed that as many as two out of three in London are failing to claim the tax break which can total £2,500 a year in some cases.
Today senior Conservative MP Peter Luff, chairman of the all-party Commons business committee, will put forward a Private Member's Bill, the Small Business Rate Relief (Automatic Payment) Bill.
The Tories are vowing to implement the legislation if they win power. It is also backed by the Federation of Small Businesses. The Tories are also urging Chancellor Alistair Darling to support the changes.
The Valuation Office Agency warned that business rates are set to rise by five per cent in April, despite plummeting inflation, and transitional relief from the 2005 rates revaluation has expired.
