By Mark Smulian | 15 August 2013
Business rate relief for smaller firms has trebled in value since the last general election, Communities and Local Government Secretary Eric Pickles has said.
In 2009/10, £333m in was paid out in relief. This rose to £900m in 2012/13, mainly due to more businesses applying since the relief was temporarily doubled in October 2010.
This means that until April 2014 around 500,000 small firms and shops are paying no rates on properties with a rateable value of up to £6,000, and a tapered reduced rate above that to £12,000.
The small business rate relief scheme is funded by larger businesses paying a supplement on their rates.
Details of business rates appeared in the Department for Communities and Local Government’s publication national non-domestic rates collected by local authorities in England 2012/13.
Pickles said: ‘These figures show clearly that this government’s policy of cutting both taxes and red tape for small firms, supports local traders and entrepreneurs across the country.’
The Federation of Small Businesses welcomed the increased amount paid in relief but said next year’s proposed rise in business rates should be cancelled to prevent further burdens falling on its members.
National policy chair Mike Cherry said: ‘Business rates place a significant burden on small firms.
‘The government must act to help those still struggling by cancelling the inflationary increase planned for next year.’
The DCLG figures showed the net yield from business rates across England was £21.8bn in 2012/13, up from £21bn the previous year.
Local authorities granted £2.4bn of mandatory and discretionary reliefs of all kinds from business rates in 2012/13, almost 12% more than in the previous year.
Of this, £1.3bn was mandatory relief for charities, more than 13% up on the figure in 2011/12.
