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"It cannot be right for smaller town centre retailers to be facing massive hikes while the Amazons and ASOSs of this world have their business rates cut." '20th century system' Labour's plan would include a fund worth 150m a year for the next three years for small and medium-sized firms at risk of bankruptcy due to "sharp and unmanageable" increases. It would be distributed by councils under already established powers to provide discretionary relief, with the cost covered by central government. Analysis: Simon Jack, business editor Although many businesses are expecting small falls in business rates in April, around a third are expecting very sharp rises, with a fifth - mainly in the South East - expecting a rise of more than 40% immediately - and that is AFTER a government plan to use 3.6 billion pounds saved by the winners to offset the pain of the losers. The Federation of Small Business is warning than half of those facing hikes will reduce, postpone or cancel investment, with nearly a fifth considering closing down or selling up. Revaluations happen every five years, but the 2015 reset was postponed ahead of the last general election - hence the severity of the moves. Many of the newest and biggest retailers like Amazon and Asos are expected to benefit from reductions in rates on their out-of-town sites. The government has signalled it may find extra money to help the hardest hit. Many small business owners will be watching next week's Budget to see if it delivers. Image copyright Getty Images Image caption Shadow business secretary Rebecca Long-Bailey will be meeting business organisations to discuss rates on Monday In the long-term, Labour said the system should be fundamentally reformed to ease the burden on high streets and town centres. Meanwhile, a survey of 675 members of the Federation of Small Business (FSB) found that almost a fifth of businesses facing higher rates may consider closing their doors. The research suggested more than a third (36%) of small firms expected their rates to increase, with 44% expecting bills to eventually rise by more than 1,000 a year, and just over a fifth expecting an increase of more than 40%.
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