Federation of Small Businesses asks resellers for business rates protest

Trade body wants VARs to sign petition against possible rise in business rates

Trade body the Federation of Small Businesses (FSB) is encouraging its reseller members to sign a petition protesting against a possible rise in business rates.

Business rates – the way in which businesses contribute towards the cost of local authority services – are currently set nationally by central government. However, an ongoing inquiry is being conducted by Sir Michael Lyons, a professor of public policy at Birmingham University, on behalf of the Office of the Deputy Prime Minister, to undertake a review of local government finance and structure.

The report’s final proposal, due later this year, could see a recommendation for the decentralisation of business rates to local councils, which could hit the pockets of smaller firms.

Matthew Knowles, an FSB representative, said such a move could result in job losses and financial damage.

“Local businesses could be severely damaged if there was an increase,” he said. “In the 1980s there were year-over-year increases of more than 50 per cent in business rates. This is an issue close to our members’ hearts and we want to make sure that Lyons is aware of the feelings of SMEs.”

The FSB has asked its 195,000 members to sign a petition against the move, which it hopes to have signed off and presented to Lyons by the end of October.

Steve Derbyshire, managing director of VAR Telamon, told CRN: “I wouldn’t welcome any increase in rates. If rates go back into the control of local councils then each one would be competing geographically on the rates charged.”

Chris Malthouse, finance director at Associated Network Solutions, told CRN: “I assume that local councils would have a better feel for local firms’ requirements, but price competition would be an inevitable outcome of decentralisation.”

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