Small businesses in North Yorkshire are demanding a radical overhaul of the Uniform Business Rates system.

They have rejected outright new proposals to give local authorities the power to set the rate or charge an additional levy.

The 115,000-member Federation of Small Businesses, 2,500 of whom are in North Yorkshire was responding to the government's consultation on the uniform business rate.

The Federation argues that the burden placed on small firms by the existing rating system is no longer in doubt "and this should not be exacerbated by enabling authorities either to set the business rate locally or to levy supplementary rates."

The Federation's key recommendations include -

Introducing a banding system where small businesses would receive the greatest relief

Maintaining a central pooling system where revenue is distributed to local authorities

Speeding up the appeals process and overhauling the exemptions system while extending hardship relief.

Philip Allott, chairman of the North Yorkshire branch of the Federation, said the government had fulfilled half its task by carrying out wide-ranging consultation. "Now it must listened to those burdened by the current business rate system."

He said: "Labour promised to review the iniquitous UBR system when it came to power and the result has been one of the largest responses from small businesses at grass roots level. "There is no doubt that if small firms wanted just one business issue reassessed radically, then this would be it.

"For too long now the unfair system has impacted upon small businesses while large firms have been cushioned against its effect.

Rates account for 36 per cent of small business profits, while for large businesses it accounts for around 16 per cent of profits. It's quite clear that there is a need to rebalance the rates burden."

Diana Evans, chairman of the Federation's York branch, said: "The record of local authorities granting hardship relief to small firms is inconsistent to say the least."

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