Councils urged to spread tax payments to help small businesses

Rochdale’s MP Simon Danczuk has called on local authorities to help high street businesses that are bracing themselves for yet another increase in business rates by using new discretionary powers to spread payments over 12 months instead of 10.

With retailers preparing for a 2.6 per cent increase in business rates in April and the British Retail Consortium warning that rising operating costs are making matters worse on the high street, Mr Danczuk said councils need to do everything possible to minimise the damage.

“It’s been a dreadful start to the year on the high street and the Government really should be freezing business rates,” he said. “George Osborne might be burying his head in the sand about this, but local authorities need to be in touch with business concerns and one way they can ease the pain is by letting businesses pay rates bills over twelve months instead of ten. My own local authority asks for payment over ten months and I know many others do the same.”

He added that this was one of the suggestions made by Mary Portas in her independent review of the high street.

“Small businesses are always telling me that business rates are far too high and this is something that Government ministers have to take responsibility for,” he said. “But councils can do their bit by making better collection arrangements and if this provides a bit more breathing space in what are very tough trading conditions then it’s got to be worth it.”