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Councils must allow businesses to vote, if a supplementary business rate (SBR) is to be introduced, according to the British Chamber of Commerce. This was the response to the Department of Communities and Local Government select committee report on an SBR published last week. The report fails to set a cap of 4% for any proposed SBR, an issue of concern for the British Chamber of Commerce, and instead reveals SBRs could reach or top 10%. The report states: ‘Where proposals for a local SBR contemplate a variation from the national business rate of more than 10%, a ballot of the business communities affected should be the norm'. It also states any revenue raised by a SBR cannot be used by councils to meet ‘existing spending commitments'. ‘We don't want a Supplementary Business Rate in the first instance,' said Natalie Evans, head of policy at the British Chamber of Commerce. ‘Businesses are already contributing a great deal of money through business improvement districts and the transport innovation fund. ‘But if an SBR is introduced, we would want a business vote on the rate. There would be a significant amount of money involved and we want a say on what it will be spent on. ‘The money must be for specified infrastructure and should be ring-fenced. Offering a blank cheque to councils is not the answer.' A local government spokesman told The MJ: ‘Had business rates matched the rise in council tax since 1997, council taxpayers would be £250 better off. ‘Councils recognise the importance of businesses, and would not tax them until they went bust.'

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BUSINESS

No tax without votes, businesses tell ministers

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