Parliamentary Group looks at business rates and SMEs

The All Party Parliamentary Small Business Group is conducting extensive research into business rates and the effect they have on small businesses.

The Group said: "They are the principal tax faced by small businesses and increases can create a competitive disadvantage. Business rates are a major concern to small businesses as business rates are proven to bear disproportionately harder on small businesses with small businesses paying 'more per square metre on their premises than larger businesses'."

The Group is surveying thousands of UK SMEs on the topic and is consulting with many stakeholders. It will hold a meeting on the topic on the 23 March 2004 in Westminster in order to gain further evidence. Following the meeting the Group will collate its findings and publish them in a report.

The Parliamentary Group is looking at all areas of the 'rating game' from valuations and appeals to new policy developments and possible reforms of the system.

It said: "In the next few years there are going to be many changes to the rating system in England and Wales because of the Local Government Act 2003. Some of the major changes are the use of business rates to fund urban regeneration (Business Improvement Districts) and the use of rates reliefs for businesses with particular characteristics (Small Business Rates Relief).

"In 2005 there will also be another revaluation with many small businesses seeing significant changes in their Rateable Value and their rates liability. Steep changes in rates liability will have a greater effect on SMEs than large companies and therefore they must be protected from debilitating rises. The APPSBG intends to look into all the above topics and more and provide a definitive assessment of SMEs and their Uniform Business Rates."

The APPSBG is the largest cross party group of its kind with more than 440 MPs and Peers. It examines and reports on a range of issues affecting small businesses and recently conducted substantial research into the opportunities and threats facing freelancers.

If you would like to provide evidence to the APPSBG or submit comments as part of the Group's research, please post below and we will collate them as a submission.