Forum of Private Business urges rates relief claims before September deadline

Business owners hit by high rates should apply for some of the £200m of relief that goes unclaimed every year, according to the Forum of Private Business (FPB).

Some small businesses eligible for a rates rebate are not aware of the scheme and, in addition, many business-owners are paying additional property taxes, including supplementary business rates, as part of the nationwide Business Improvement Districts (BIDs) programme, but are seeing few of the proposed benefits in return for their money.

FPB member Tim Rhodes, who is the Managing Director of Skypark Freight Ltd in Liverpool, said: "The Government could also do more to promote the scheme – it's interesting how, when they want money off you, they make it clear what you need to do, but when the boot is on the other foot, it's impossible to get hold of them," said the "On the face of it, SBRR is a good idea and it does appear to be working. However, I am sceptical about it. I am concerned that, because it was rushed in, in the future there will be additional hikes in business rates."

SBRR scheme

The SBRR scheme was introduced in April 2005 to give businesses based in properties with low rateable values the opportunity to ease the burden of their rates. However, some small firms believe that they are unfairly missing out.

Research from the Local Government Association (LGA) suggests that fewer than half of the 870,000 small businesses across England which qualify for the scheme have applied for it. The survey, which was carried out in 2006, reveals that the take-up of SBRR varies widely across the country (79 per cent in the North East, but only 26 per cent in the North West, for example).

The FPB is encouraging all small businesses which have properties with low rateable values to contact their local councils to ask about Small Business Rate Relief. The average processing time for applications is two weeks.

Nick Palin, the FPB's Finance and Administration Director, said: "Eligible ratepayers must apply for the relief each year. Businesses which have not yet applied for SBRR are running out of time as the deadline for applications this year is 30 September.

"The Government needs to do more to promote the scheme to help small firms, which, given the current economic climate, need support more than ever."