Almost four in 10 high street businesses could not survive without business rates relief, a major study has revealed.
The finding forms part of the Federation of Small Businesses’ (FSB) new report, Streets Ahead, setting out small businesses’ demands ahead of the March Budget.
According to the research, just half (50 per cent) of small firms in rural areas are positive about the future, while even less (35 per cent) in urban districts say the same.
However, seven in 10 (70 per cent) small firms say minor adjustments, such as fixing potholes and increasing access to free high street parking, would boost their business.
Additionally, 56 per cent same decreasing rent levels would make a positive difference to the high street, while a similar number (54 per cent) believe that keeping bank branches open would encourage footfall.
Business rates costs are also a major issue, one which FSB Chairman Mike Cherry says has “intensified” over the years.
“Our research shows that without the business rates relief, a staggering 38 per cent of small businesses on the high street would not survive,” he said.
“This just goes to show how regressive and unfair the rates are on small firms. That is why we’re calling on the Government to further extend the scope and duration of the ‘Retailers Relief’ and to remove the rateable value ceiling of £2,899 on second business premises in England.”
He added: “Small businesses are the backbone of our economy, but in order to thrive they need the right support, and it’s time that the Government takes action now to help secure the future of these firms.”
Click here to read the FSB’s new report.
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