Burt Backs FSB Campaign For Urgent Help For Village Shops And Pubs At Risk Of Closure (West Worcestershire Liberal Democrats)

West Worcestershire Liberal Democrats <contact.us@westworcslibdems.org.uk>

Burt Backs FSB Campaign For Urgent Help For Village Shops And Pubs At Risk Of Closure

July 7, 2009 8:27 AM

Richard Burt is backing calls from the Federation of Small Businesses (FSB) for the Treasury to make more funds available to local authorities so they can grant 100 per cent rate relief, for a fixed period of just 12 months, to help these vital village business weather the downturn.

Village businesses, such as shops and pubs, are entitled to 50 per cent relief on their business rates under a Rural Rate Relief scheme, which also gives local authorities discretionary powers to grant up to 100 per cent business rate relief, but according to the FSB, 47 per cent are currently missing out, which could mean the difference between survival and closure.

Richard, who raised the issue with Malvern Hills District Council on behalf of village businesses earlier this year, said that in many cases the council was relying on a top-up contribution from parish councils, which means that in some cases rural business owners were having their business affairs scrutinised by parish councillors who were often their own customers.

Richard said he would write to the Chancellor to back the call for a short term increase in funds to help rural businesses survive.

"It clearly isn't right that Rural Rate Relief should rely in part on parish contributions. Business owners I have spoken to feel it is an invasion of privacy to have their business affairs considered by parish councillors in order to qualify for additional relief.

"A time-limited cash injection by the Treasury to local authorities would remove the need for this and give rural businesses a better chance to survive until the economy picks up.

"Without government support, even more village shops and businesses Worcestershire will go to the wall."

The village shop network is losing between 300 and 500 shops each year, and 13 rural pubs close each week, yet the existing Rural Rate Relief scheme is not being fully used to help save these businesses, which form the heart of village life.

In a poll of FSB members, 44 per cent said they relied on a sole pub, shop, post office or petrol station in their area. They cannot afford for these small businesses to fail.

Linda Walton, Rural Affairs and Tourism Chairman, Federation of Small Businesses, said: "Every week we hear of the death of village shops and pubs yet the Rural Rate Relief scheme, which was specifically set up to help these rural businesses, is being chronically underused. Village shops and pubs are at the heart of village life and the failure of such a business can devastate local communities, the Treasury must ensure our village shops and pubs do not go the same way as the Royal Show by enabling our local authorities to give 100 per cent rate relief during this downturn."