The FSB is also calling on the government to help by increasing the number of SMEs who are able to claim business rates relief by moving the threshold to £25,000 and establishing a revenue test, so business rates relief is extended to those within the supply chain who have been affected by the pandemic.
FSB (The Federation of Small Businesses) National Chair Mike Cherry, commented, "Over the past year, small businesses right across the nation have seen their finances upended, placed staff on furlough while others have been forced to make difficult decisions about their futures. However, despite all this, and in the midst of a third national lockdown, these same small firms on the high street will now start to receive letters from their local authorities asking for business rates to be paid for the next financial year.
"For too long the business rates system has been outdated and regressive, and the ongoing pandemic has only highlighted the need for serious reform in the months ahead. But over the past few months, many small firms have benefited from the retail hospitality and leisure relief which has helped to ensure businesses don't go under and jobs are saved.
"But with this due to end in April, and with the economic situation set to remain turbulent for many months to come, it is imperative that the Government extends this rates relief.”
Cherry added, "Not only do we want to see the retail hospitality and leisure relief extended, but we think it is important to widen the net of those who can claim small business rates relief. Up until now, the full relief was available for those with a rateable value of up to £12,000, we want to see this widen to include those up to £25,000. This would be a genuine relief to thousands of extra firms who are struggling to make ends meet at a time of national crisis.
"Our small businesses on the high street are the beating heart of our communities and will also be crucial to the whole nation's recovery, but slapping regressive business rates bills on them will only undo any hard work they've done to keep running.
"The government must make big decisions for small businesses, and this would be one important step to helping firms onto the path to recovery."
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