BPF Comment on Queen's Speech 3/10/2008

Local Authorities new power to increase business rates is bad news for plastics’ companies says BPF.

Not mentioned in the Queen’s Speech is the Business Rates Supplements Bill.  This gives local authorities from April 2010 the power to levy a local supplement up to 2p per pound of rateable value to the nationally determined Uniform Business Rate, and retain the proceeds for ‘economic development.”

Only where the revenue for this supplement funds more that a third of the costs of a particular project, then businesses will be able to vote on the project.

Peter Davis Director General of the BPF said, “Supplementary business rates were abolished in the late 80’s after a great deal of abuse and controversy.  Now they are back adding cost to the plastics industry at the worst possible time.  The BPF opposed this measure from its birth.”

Davis commented, “Businesses don’t have a vote so there is a strong risk local authorities will use them as a cash cow to fund dubious projects under the guise of ‘economic development’.  I guess the perhaps mythical post of a Council’s ‘Business Development Smoking and Ageism Awareness Officer’ could be funded by this supplementary rate.”

Peter Davis added, “No wonder this extra burden for business was not mentioned in the Queen’s Speech.  It instantly debunks the second sentence in her Majesty’s speech: “My Government is committed to helping families and businesses through difficult times.”

The BPF’s Recession Action Group will consider what action to take.
ENDS . . .

For further information on this press release, please contact Philip Batten, British Plastics Federation, 6 Bath Place, Rivington Street, London, EC2A 3JE, tel 020 7457 5000, fax 020 7457 5045, email: [email protected]

Notes for editors
1)     British Plastics Federation (BPF) is the UK trade association for the plastics industry – representing the whole supply chain including polymer producers, distributors, additives suppliers, machinery manufacturers, processors and recyclers.