Ministers urged to overhaul business rates in 'green revamp'

Ministers have been urged to overhaul ‘indefensible’ business rate rules that penalise companies for improving their properties. 

Firms can be stung with higher rates for adding solar panels, recycling facilities and other green measures, according to the Federation of Small Businesses (FSB). 

On top of this, they can also face higher charges for making improvements that make workplaces better for employees such as bike sheds and air conditioning. 

Shopping around: Improving premises can increase a property’s ‘rateable value’ – and push up the business owner’s bills

Such changes increase a property’s ‘rateable value’ – and push up the business owner’s bills. 

But the FSB said this means the current system ‘hurts small firms trying to do the right thing’. 

It wants the Government to update the rules so that green improvements can be exempted from a property’s rateable value, as well as changes that improve working conditions. 

The FSB also wants a total exemption from rates for childcare businesses and an easier appeals process.