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Business group calls for rates overhaul

The Federation of Small Businesses (FSB) has called for a radical overhaul of the business rates system.

A recent survey conducted by the organisation suggests that almost one in ten business owners are paying more in rates than rent, with one in five revealing that they pay full business rates.

The FSB is urging the Government to review the system, with the aim of making it fairer and simpler.

Business rates are due an inflationary rise in September, and the FSB is recommending that the inflation index should be changed from RPI to CPI.

John Allan, FSB National Chairman, said, ‘Businesses will continue to be lost as a result of this outdated and unfair system. The Autumn Statement will need a wide range of measures to target relief at businesses most in danger, and it will need to talk to business about a major overhaul of the system’.