Figures reveal extent of SME tax break support
Posted by Jon Wilcox in Finances on Fri, 26/08/2011 - 08:09
The average amount of Small Business Tax Relief made available to eligible companies across England currently stands at £1,340, according to figures released by the Department for Communities and Local Government.
According to the date, approximately 330,000 companies will pay no rates at all over the 2001/11 period as a result of the government’s decision to extend its discount scheme.
The figures, released alongside the announcement, reveal coastal areas to be some of the biggest recipients, which the department cites is due to their “high concentration of small firms and shops”. The Essex coastal town of Tendring is the area with the highest frequency beneficiaries; according to the data 60% of companies in the town are getting a rate reprieve.
This contrasts heavily with the City of London, where just 1% of businesses receive a reprieve.
The government’s plan to double the Small Business Rate Relief scheme through to the end of September 2012 is expected to offer £340m of additional help for approximately 500,000 business ratepayers across England.
Communities secretary, Eric Pickles said: "Small shop and firms are at the heart of our communities, and it has never been more important to support them as they help rebuild and re-grow this country's economy for the future. These new figures show just how much difference doubling the business rate discount has made to the country's economic prospects, especially in our 'small business capitals' where there are a high proportion of small firms and shops.”
"Around half a million small firms and local shops on the high street have been given over £340 million worth of financial breathing space with this tax break,” he added.
Under Whitehall plans, local authorities are to be given the power to set discounts on rates “provided that they are funded locally, allowing them to support the local firms and shops if they are struggling or encouraging new start-up enterprises.”
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