ACS Opposes Local Supplementary Business Rate


07 Aug 2007
 
The Association of Convenience Stores (ACS), the campaigning voice of over 33,000 local shops, has voiced its concern at a report by the Communities and Local Government Select Committee which calls for a local supplementary business rate (SBR).  

The report follows a proposal made by Sir Michael Lyons to introduce a local supplementary business rate to increase local government finance. The Select Committee’s report supports the introduction of SBRs that could be levied on businesses without a ballot. The Committee’s report is also vague as to whether there should be an exemption for small business, only saying this should be decided at a local level.

ACS does not believe that the introduction of a local supplementary business rate would benefit business or communities, and would only lead to an increased burden on retailers.

ACS Chief Executive James Lowman said: “Local supplementary business rates would be an unnecessary added burden and confusion for retailers. This could lead to a return to the experience of variable business rates in the 1980s which didn’t work for business or communities.

“We believe that SBRs would be used by local authorities as an easy way of raising money which will be of little benefit to convenience stores. The Committee’s proposal would not allow for a ballot of businesses unless rates are increased above 10%. This is not democratic. It is also contradictory with another Communities and Local Government policy, Business Improvement Districts (BIDs), which are subject to a ballot and therefore more likely to have the support of local retailers.

“We are also disappointed that the Committee did not state the need for an exemption for small businesses who would be the hardest hit but gain the least from these proposals.”

Contact:

Shane Brennan Public Affairs and Communications Manager
ACS
01252 515001 / 07921 372978

Rachel Lawson Communications Co-ordinator
ACS
01252 515001

Notes to Editors:

1. ACS is the convenience store champion, helping local shops thrive through lobbying, insight, information and commercial services.

2. You can view the report by the Select Committee here http://www.publications.parliament.uk/pa/cm200607/cmselect/cmcomloc/719/719i.pdf
3. Business Improvement Districts (BIDs) are locally controlled partnerships to improve the environmental and economic performance of an area. They are created and paid for by local businesses who use the BID to fund additional or enhanced local services and are voted on by the businesses in the area.