MP Says Bureaucratic Complexity Costs Local Business £6m

Yesterday in the Commons, John Baron MP pressed the Secretary of State for Business and Enterprise over the low uptake of Small Business Rate Relief in Essex. Currently, small businesses across Essex are losing out on £6 million in unclaimed rate relief due to bureaucratic complexity.

John said: “Essex is one of the most enterprising counties in Britain, with small businesses across Basildon District contributing much to the local community. However, at a business breakfast I hosted recently we discussed the fact that three-quarters of eligible businesses are failing to claim an estimated £6 million in small business rate relief due to bureaucratic complexity.

“Will the Secretary of State now address this issue and make it easier for business to claim this money – firstly by making the relief last for the lifetime of the valuation list, and secondly by granting it automatically to all those eligible – as the FSB recommends”

The Minister said that he would look at what John said

Afterwards John said that at a time when the economy is slowing, government should be doing all it can to help small businesses. He emphasised that government's own bureaucracy is preventing local companies from claiming money owed to them and pointed out that this is on top of Gordon Brown having recently increased small business corporation tax. He pointed out that small businesses are taking note of these difficulties.