ACS

ACS has criticised a report from the Communities and Local Government Committee which calls for more scope to be given to local authorities to charge businesses under the Supplementary Business Rate (SBR) scheme. The Government are proposing to introduce SBR as an additional charge, but the Committee for MPs has called for these measures to go further, including allowing various tiers of local government (such as the Greater London Authority and individual London councils) to each initiate an SBR, and removing the exemption for small businesses. The report will feed into the Government’s consultation on the introduction of SBR, and ACS are warning of the consequences of allowing the Committee’s recommendations to hold sway.

ACS Chief Executive James Lowman said: “Businesses such as convenience stores already pay business rates. SBR will just be another burden, and will largely go towards paying for projects that should be undertaken as part of a local authority’s core activity. Rate-paying businesses deserve to trade in a well-managed, clean and properly policed area without paying twice for the privilege. Businesses located in an area with more than one local statutory body, such as in London or in areas with a county and borough council, could be faced with SBR charges from more than one source if the Committee’s recommendations are taken up.

“If the exemption for businesses with a rateable value of less than £50,000 were removed, thousands of community stores would be faced with additional costs which many cannot afford and which they should not have to pay. The Committee’s recommendation that the cap on SBR should be removed is also misguided. We cannot face a situation where retailers are signing a blank cheque for councils.”

The Committee make reference to SBR being used to foster partnership between businesses and local authorities, but ACS insists this is not the correct vehicle for such collaborative working.

Mr Lowman continued: “We already have in place the opportunity to run Business Improvement Districts (BIDs) through which local businesses vote on whether to undertake and pay for improvements to the local area. We believe that BIDs are the right mechanism for promoting partnership working, not SBR which is ultimately an additional tax. IF SBR is to be introduced, it must come with limits to charges made, as proposed by the Government and as opposed by this Committee.”

The Government is expected to announce the details of its plans for introducing SBR later this year.