ACS

Bob Spink MP has tabled an early day motion (EDM) today highlighting his concern against the disproportional rise in business rates compared to the increases that domestic properties and local businesses will receive.

Mr Spink stated that business rates will increase in April 2009 by 5.02 per cent to reflect inflation, while the standard national non-domestic rate was increased by 4.97 percent, thereby making small businesses pay a higher rate for what is their third highest business cost after salaries and rent. He also makes the point that the Government gave local councils 2.5 per cent to reflect inflation for the same period. Mr Spink focused on the burden rates place on small business and calls for the Government to review its policies regarding small businesses and to reduce their taxes and costs.

Early day motions are a method by which MPs can highlight their concern over a particular issue. The higher number of MP signatures that an EDM gains the greater the concern within parliament. However the Government is under no duty to respond. This EDM currently has one signature.

Business rates increase annually in April and are calculated on the Retail Price Index (RPI) the preceding September. In September 2008 the RPI level was 5% - the height of inflation in recent years. However by November 2008 this figure had dropped to a mere 0.9%. Therefore when business rates increase in April they will no longer be representative of the current market.