End of business rate relief

Business rates are reassessed every five years and companies that see sharply rising bills are eligible for transitional relief totalling £100m a year.

However, this scheme is due to come to an end across the country from April 1, affecting tens of thousands of businesses that have been paying reduced bills for years and in some cases for decades.

All businesses will see an increase in their rates bill of at least 5pc in 2009/10 bills because councils are instructed by Government to use the Retail Price Index measure at September 2008 rather than the prevailing 0.1pc rate. Some companies face rates bill increases of 1,000pc from £190 to £2,200.

The association called for an extension of the relief to protect the businesses that have been worst affected and that are in danger of going bankrupt and consequently causing job losses.

A recent survey found that more than half of all councils are reporting that companies in their area are having difficulty paying business rates to local authorities. It also showed that small businesses are seeking support from local authorities in eight out of ten council areas.

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