Clearview South August 2013 - Issue 141 - Page 68

BUSINESS Business rates need radical overhaul The business rates system needs a radical overhaul as almost one in 10 respondents to a Federation of Small Businesses (FSB) survey say they are paying more in rates than rent. The survey, which polled 2,425 FSB members, found that a fifth of respondents pay full business rates, with three in 10 firms receiving some form of rates relief, such as small business or rural rate relief. However, the FSB is concerned that seven per cent of respondents paying business rates say they pay more in rates than in rent. A further six per cent say their rates and rent costs are about the same. The FSB believes the business rates system is cumbersome and overly complex, and would like to see the Government take a formal review to make it simpler and fairer, as it is doing with other taxes. While business rates generate a huge sum for Treasury, it is a tax not related to economic activity and this needs to be addressed. With another inflationary rise due to be calculated in September the FSB wants to see the Government change the inflation index used to calculate annual increases from the RPI to the CPI to bring it into line with other government policies. The FSB believes that changing the indexation in this way, as recommended by Mary Portas, could help small firms on the high street. Report reveals the power of small businesses in the local economy Extensive new research from the Federation of Small Businesses (FSB) shows that 58 per cent more of the money spent by local authorities with small firms is re-spent in the local economy compared to that spent with large businesses in the same area. In an exclusive report the FSB and the Centre for Local Economic Strategies surveyed local authorities across the UK and found that in the last year they spent a total of £8.7 billion buying goods and services in their local area. firms generated £746 million more for the local economy compared to large local businesses – even though more than £500 million less was spent with them. The research shows that for every £1 spent with a small or mediumsized business (SME) 63p was respent in the local area compared to 40p in every £1 spent with a larger business. John Allan, National Chairman, FSB, said: “This report shows the power and strength of small firms to create jobs and growth in the local economy if they are given the help to do so. While our members do win contracts, many are still deterred by the process. We had a good response to the survey, which shows local authorities working with SMEs, but we say that more of this will help boost the local economy.” ‘Doing business locally is better value for money’ The findings highlight how doing business locally is better value for money as small local Have You Got The Answers? Allan Tofield of Richmond says very often the quality of a company is only revealed when the customer has an issue. “In my experience clients rarely ask enough questions about the company, its history and credentials, as well as product guarantees and on-g r6W'f6RFRV&W"RVW7F2v3( rV6( FV6W3( r6( ( f7BvV6W2VW7F2g&7W7FW'2Bb6GVF&6W2BvfW2FR'GVGF&fRFRv&6BFW2'W6W72R7VvvW7G2FRVW7F27W7FW'26VB6( &RW"W&FfW2gVǒVVBB&W&ǒG&VC( ( FRfRv7FRƖ6V6RFF76Rbv7FR&W76&Ǔ( ( &RRgVǒ7W&VBRrV&Ɩ2Ɩ&ƗG&fW76FVGBFRVWBVFB6fWG&WV&VVG3vB67&VFFF2BGW7G'7FF&G2fRR6WfVC( ( FRfR6ƖVBFW7F2F7V'7FFFRW"v&2B76&RFfWr&V6VB&V7G3( 6C( 6FǒW7Vǒ7W7FW'2FB6VVvVW7F2WBFW&RFr66W72F&V2FV"7BfV&R76WB( 2FV"R( &6Bv2W7F&Ɨ6VBB2w&vV"V"FWfRBw&VB7F'BFFRV"fr&V6VFǒ&V6VfVB67&VFFFg&F&VRbFR6VG'( 2VFrVFB6fWG&v6F26WVBvFfRF&vW"&V֗6W2ࠧwwrFV&VvvF'6WB6ࠣcTr#0F&VB&Rf6Bwwr6V'fWrV6Р