Warning that rate reforms could push big firms away

Business Editor pointed to the Pfizer’s decision to scale back in its research and development operations in 2011, which put 2,400 jobs at risk.

It has since become the business estate Discovery Park, which is home to 150 companies.

Speaking on KMTV business show Chris & Co, he said: “It has taken us 10 years to recover from that. We don’t want it happening again. For small businesses their payments will go up incrementally. For large business it can go up by 42%. That is huge. Where’s the viability?

“You have got the minimum wage increases coming in slowly as a higher cost – quite rightly in my view – but you have got to add up whether those businesses can survive in the high street.”

Cllr Dance called f or a “smoother escalator” for large businesses when reforming business rates. The changes will be beneficial to many small firms operating on smaller premises.

Small business rate relief on the tax will be permanently doubled from 50% to 100% from April.

At the same time the Government will increase the number of firms able to claim small business rate relief by doubling the threshold. It will apply to companies operating on a site with a rateable value of £12,000, up from £6,000, with tapered relief up to £15,000. This also comes at a time when Government is cutting corporation tax.

Cllr Dance said: “We feel we have supported small business but my main concern is the big high street names and the bigger businesses.

“It’s a very complex system which needs an overhaul. We’re watching like a hawk because it will be our income to cover the cost of the services we have to provide by statute, like elderly care and education.”