Business groups have united in opposition to government plans for a supplementary business rate. The Federation of Small Businesses (FSB), the British Chambers of Commerce (BCC) and the Institute of Directors (IoD) have all joined forces to call on the Government to rethink its plans for the rate. Chancellor Alistair Darling launched a White Paper on the issue as part of his pre-Budget report. BCC director general, David Frost, said: ‘It's clear from the pre-Budget report and the Comprehensive Spending Review that it will be a tight spending round for local authorities. ‘The Government will be looking for another way of raising money and this will be an easy way to generate some without any pain.' The three business groups are calling for the White Paper to include a commitment that no supplementary business rate will be introduced without a vote in favour from a majority of firms in the affected area. They also want reassurances that any money raised from the rate will be ring-fenced for specific infrastructure projects. The groups are pleased that the White Paper put the upper national limit on supplements levied at 2p in the pound, as opposed to Sir Michael Lyons' recommendation of 4p. ‘If the Government is determined to go ahead, then it needs to listen to businesses in order to choose the least-damaging option,' said FSB local government chairman, Roger Culceth. ‘Without a vote for small businesses in all cases where a supplementary business rate is planned, this will simply be another tax on the wealth-creators of our local communities.' IoD director general, Miles Templeman, added: ‘Higher rates without a mandatory vote will only deepen the disconnect between local politics and the business community.'
