28/10/2009 - Tax rise may close third of firms
Small businesses in London are facing a 38% rise in business rates - and many fear they will be forced to close as a result.
A new report reveals that a third of firms might go bust unless the proposed rise is lowered. Westminster City Council has said that many jobs would be lost if the increase goes ahead.
The survey, which looked at 120 firms in central London, suggests that a third of firms would close if rates rise by more than 25%.
Brian Connell, the council's economic development spokesman, said: "Small entrepreneurial businesses are the lifeblood of the economy, but they face being squeezed until the pips squeak by the proposed rises in business rates.
"Unless the Government introduces changes to ease the burden as a matter of urgency, jobs will be lost, businesses will go bust and many that remain will choose to move elsewhere."
Copyright © Press Association 2009
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