THE business community must have confidence in government proposals to charge all businesses a levy to fund improvement works, says the Forum of Private Business in its response to the Local Government White Paper.

The government's proposed money-raising and spending system, called Business Improvement Districts (BIDs), would make all businesses within an area pay a levy to fund improvement works.

The draft bill specifies that the votes required for a BID are a majority of those who actually cast a vote rather than a majority of the electorate.

Nick Goulding, FPB chief executive, said: "Current proposals as outlined in the draft Local Government Bill fail to deliver any meaningful safeguards for business ratepayers.

"To ensure effective protection, the FPB recommends that a turnout majority of greater than 50 per cent is specified to ensure that ratepayers don't feel that they are being railroaded into schemes that have little appeal.

"This would help ensure that BID proposals were properly supported."

More than half of FPB members have voted against the introduction of BIDs.

They argue that the burden would fall on those least able to afford it, even though the proposed legislation would ensure that projects were additional to local authorities' essential services.

Mr Goulding said: "Uniform Business Rates is one of the principal taxes faced by small businesses and any increases can create a competitive disadvantage."

The FPB says it is essential that an effective Small Business Relief targeted at the size of the business, rather than the property, is introduced.

Margaret de Wolf, FPB rates campaign adviser, added: "It should also be remembered that, to be selected, the area in question would normally be run-down or derelict.

"The owners of businesses in such areas do not have money to spare for paying into such schemes they have problems surviving."