SMALL firms are urging the Government to extend rates relief.

Businesses hard hit by the pandemic will soon start to receive letters from City of York Council asking for business rates to be paid for the next financial year.

The Federation of Small Businesses for York and North Yorkshire is pressing for an extension of the 100 per cent relief for retail, hospitality and leisure operators until April 2022.

It also wants a revenue test to be established so the rates relief can be extended to those in the supply chain impacted by the crisis.

The FSB is also calling for an increase to the number of small businesses able to claim relief by moving the threshold to £25,000 from £12,000.

Carolyn Frank, of FSB North Yorkshire, said: "It is clear from speaking with both businesses in York and North Yorkshire, and with the city and district councils, that the sooner government make an announcement on business rates relief, or reform, the better.

"We do not want to see a situation where business rates demands are sent out, and then need to be revised, as this is undue pressure on businesses and also on the revenues department at the councils, who are working hard enough already to deliver Covid grant programmes.

"The whole business rates system needs permanent reform, including the “Check Challenge Appeal” system that small firms use to appeal rate bills, this is absolutely long overdue, but the urgent matter of relief extension is right now.

"Firms have never been under more pressure financially, and business rates relief should not only be kept, but extended to other sectors too, particularly the supply chain to retail and hospitality.

"Firms have never been under more pressure financially, and business rates relief should not only be kept, but extended to other sectors, particularly the supply chain to retail and hospitality. Non-rate paying businesses without premises also need further support, including those who have missed out. We hope this will be addressed on March 3 in the budget, if not before."

Small businesses have seen their finances upended over the past year, with staff placed on furlough and difficult decisions made about their futures, said FSB national chair Mike Cherry.

"However, despite all this, and in the midst of a third national lockdown, these same small firms on the high street will now start to receive letters from their local authorities asking for business rates to be paid for the next financial year.

"Over the past few months, many small firms have benefited from the retail hospitality and leisure relief which has helped to ensure businesses don't go under and jobs are saved.

"But with this due to end in April, and with the economic situation set to remain turbulent for many months to come, it is imperative that the Government extends this rates relief."

He stressed the 'ongoing issue' of those left with little support, including thousands of small businesses in the supply chain.

"Our small businesses on the high street are the beating heart of our communities and will also be crucial to the whole nation's recovery, but slapping regressive business rates bills on them will only undo any hard work they've done to keep running."