FSB gives green light to Labour’s business rate freeze plan

Rachel Reeves said at the annual Labour conference that if Labour was elected to power it would scrap business rates and undertake the “biggest overhaul of business taxation in a generation”. Part of this plan would be to freeze business rates and replace them with a new system that would reward investment with a focus on decarbonisation and green technology.

Ms Reeves acknowledged high-street businesses have faced “huge adversity in the past year”. She added the Labour policy would mean a freeze in business rates until the next revaluation, which would greatly benefit the retail and hospitality sectors in particular.

FSB national chair Mike Cherry said the proposed Labour policy would see up to 200,000 small firms removed from the business rates system if it went ahead.

“A successful everyday economy needs successful everyday entrepreneurs – start-ups, micro businesses and sole traders taking forward new ideas as the commercial landscape changes,” he said.

“Currently, our business owners are up against it like never before. From spiralling costs, to trade disruption, to a worsening late payment culture, to chronic skills shortages, to emergency debt repayments, our everyday entrepreneurs are in urgent need of help.  

“A lot of small firms will cheer the pro-business policies set out in this speech as they fear a hike in the anti-growth jobs tax in April.”

Mr Cherry said the key to the success of a new office for value for money will be bringing smaller firms into local and national government supply chains.

“Equally, greening the economy and meeting our net zero targets will only be possible if our 5.9 million small businesses are empowered to make incremental gains. The billions pledged today would have to reach those who can really make a difference,” he said.  

“It’s now up to the Government to respond in kind, setting out the measures it will implement in the forthcoming Budget and Spending Review to get our beleaguered everyday entrepreneurs firing on all cylinders again.”