Councils: offer pubs rates breaks

Council bosses have called for greater powers to give business-rates "breaks" to struggling small firms.

This comes in the wake of a new Local Government Association (LGA) survey, which shows that more than half of all councils say firms in their area are having difficulty paying business rates to local authorities.

The survey also highlights that one in three councils has seen an uptake in Small Business Rate Relief (SBRR), although almost half still goes unclaimed.

The LGA has launched a four-point plan to encourage councils to support small businesses in the tough economic climate.

The four main points are to encourage local councils to "buy local", urge businesses to make sure they claim SBRR, have discretion to offer troubled businesses rates holidays, and encourage councils to ramp up improvements, such as street cleaning and CCTV.

LGA chairwoman Margaret Eaton described the problems paying rates as "worrying", adding that small businesses are the "glue that bind together local areas". She reassured small firms that "town halls will do all they can to keep small businesses going in tough financial times ahead."

Eaton suggested some councils may offer grants for local business-people to "spruce up" their shop-fronts to attract custom.

Federation of Licensed Victuallers Associations chief executive Tony Payne said: "We support any move where councils would reduce business rates for small firms. I also think every licensee should examine their expenses regularly, and make sure they are claiming small business rates relief and rural rate relief where they can."