The Federation of Small Businesses (FSB) is calling on the Government to extend business rates relief to 2022.
As business rates relief for the retail, hospitality and leisure sectors is set to end in April, the organisation is urging the Government to extend it for another 12 months, to April 2022.
It also recommended establishing a revenue test so the relief is extended to the supply chains affected by the pandemic.
In addition, the FSB is asking for an increase in the number of small businesses that are eligible to claim business rates relief by moving the threshold from £12,000 to £25,000.
The news comes as Chancellor Rishi Sunak announced UK firms that took out bounce-back loans will be given some ‘breathing space’ to make their repayments.
Mike Cherry, chairman at the FSB said:
‘It would be hugely unfair to slap small firms with large business rates bills at a time when many won’t see their incomes rise for months to come, which is why this extension is needed for at least another 12 months‘
‘Up until now, the full relief was available for those with a rateable value of up to £12,000, we want to see this widened to include those up to £25,000. This would be a genuine relief to thousands of extra firms who are struggling to make ends meet at a time of national crisis.