A new law allowing local authorities to impose higher rates on small firms has been slammed by the Forum of Private Business (FPB).
It might interest business insurance customers to know that Nick Palin, the FPB's director of finance, believes that the business rates supplements bill could stop companies from expanding.
He said: "These supplementary business rates would be imposed at a time when small firms could be coming out of a recession."
The FPB's members already think that they pay more than enough in taxes, Mr Palin added.
If passed, the bill would allow upper-tier authorities to levy higher rates from 2010.
However, councils will have to consult businesses on the imposition of supplementary rates and firms will be allowed to vote on any scheme where such levies fund more than a third of one project.
Yesterday, the FPB claimed that lending to small businesses is not as risky as some banks have made out.
