We store cookies on your device to make sure we give you the best experience on this website. I'm fine with this - Turn cookies off
Switch to an accessible version of this website which is easier to read. (requires cookies)

Lib Dems challenge: Only £197k paid out of Govt's £300m business rates relief fund

August 11, 2017 11:01 AM
Originally published by West Berkshire & Newbury Liberal Democrats

Only around £197k of the government's £300m business rates relief fund has actually been allocated, Liberal Democrat research has revealed, despite businesses being hit with higher rates over four months ago.

Judith Bunting with Tutts Clump on Northbrook Street

Unique and Special

Judith Bunting, local parliamentary candidate for the Liberal Democrats, said that many small businesses in West Berkshire lobbied her about the unreasonable changes during the recent election campaign. Now the delay in paying out the small business rates relief threatens local business we all depend on.

"The changes made by the Conservatives government back in April will raise hundreds of millions for the Treasury but they will break the back of many of our smaller rural companies as well as many businesses that make our High Streets unique and special. Now we learn that even the relief payments intended are not being paid out."

Crippling through incompetence

Liberal Democrat Leader, Vince Cable has accused the government of "crippling businesses through incompetence" by failing to ensure the relief is provided in time. The £300m national relief fund was announced in the Spring Budget to help businesses hardest hit by the business rates revaluation, which hit many small firms with punishing tax hikes.

Of the 99 local authorities that responded to Freedom of Information requests, only two said they have so far distributed any money from the fund to local businesses, Tambridge (£156k) and Amber Valley (£41k).

A quarter of councils that gave a reason for the delay blamed the need to update software to automate payments, one third said they were still waiting for approval from their local council while one fifth were still developing local schemes to distribute the funds.

Ghost Towns

Vince Cable commented: "The government's business rates fiasco threatens to turn our high streets into ghost towns. The hardest hit businesses were promised rapid relief to cushion the blow, but five months on most have received nothing. That is enough time to wreck many a small independent business, who face having to lay off staff or even go bust.

"This delay is completely unacceptable. The government risks crippling thousands of small businesses through its incompetence.

"It beggars belief that the relief fund was not properly set up before the business rates revaluation came into force, leaving local authorities with very little time to put together effective schemes. Ministers now need to get a grip and make sure struggling business owners get help before it's too late."

~ * ~

Follow Newbury and West Berkshire Liberal Democrats on Twitter, here: @wberkslibdems

Follow Newbury and West Berkshire Liberal Democrats on Facebook, here: www.facebook.com/WestBerksLibDems

News and views from Judith Bunting can be found, here: www.judithbunting.co.uk or @JudithBuntingLD or www.facebook.com/JudithBuntingforNewbury