Independent estate and letting agencies could gain greater scope to recruit and invest if the Government expands Small Business Rate Relief at this month’s Budget, according to the Federation of Small Businesses (FSB).
The business group is calling on the Chancellor to increase the rateable value threshold for the relief from £12,000 to £25,000, potentially removing at least another 250,000 small businesses from paying business rates.
The change could be particularly relevant to independent agencies operating from high street premises while facing rising staffing, energy and other business costs.
FSB research finds 28% of small employers would hire more staff if Small Business Rate Relief were expanded, while 26% would increase employee pay or benefits. Even among sole traders, 11% say the savings could encourage them to employ someone for the first time.
HIGH STREET COSTS
Businesses in England currently receive a 100% rates discount on properties with a rateable value of up to £12,000, with relief tapering away on values up to £15,000.
Those thresholds have remained unchanged for almost a decade.
The FSB is also calling for a substantial increase in the Employment Allowance to reduce the National Insurance burden of recruiting staff.
Other proposals include raising the VAT registration threshold to £100,000, reducing Business Asset Disposal Relief to 14% and introducing a Statutory Sick Pay rebate for small employers.
INDEPENDENT BUSINESSES
Tina McKenzie (main picture), National Chair of the FSB, says: “Small businesses across the UK are up against huge and persistent cost rises that are seeing so many struggle with running their business, let alone investing and expanding.”
She adds: “Widen Small Business Rate Relief so fewer firms are dragged into a punishing pre-profit tax, protect the Employment Allowance so hiring does not become steadily more expensive and raise the VAT threshold so firms are not deliberately holding back turnover to avoid a cliff edge.”
McKenzie says the Budget will be an early test of whether the Government is prepared to support entrepreneurs looking to invest, recruit and expand.
