David Ruffley MP has today released new figures which reveal that St Edmundsbury Borough Council's net collectable debt from National Non Domestic Rates for 2008/09 stands at £37.8million.

This figure represents an increase of £3.6million on the net collectable debt for 2007/08. The data reveals that collection rates during 2008 have lagged behind those for 2007. At 23 October St Edmundsbury had collected 68.3percent of the debt, compared to 71.4percent at 31 October 2007.

Furthermore, this year almost 50percent more recovery notices have been issued than at the same point in 2007.

David said:

'These are difficult times for businesses everywhere- not just in St Edmundsbury. The Borough Council inform me that several businesses in our area have reported that they are struggling to pay their rate demands and a number have appealed direct to the Valuation Office against their Rateable Value.

'However, while these figures are, in part, the result of the tough economic climate, they must be viewed in the proper context.

'The Government's misguided introduction of empty rates charge has meant that the target for collection has increased. This policy has inflicted yet another burden on already struggling landlords and businesses- the ultimate result of this policy is that landlords will, in some cases, choose to demolish their property rather than pay rates on an empty building.

'On face value, this increase in net collectable debt does not paint a rosy picture. However, I am confident that this is a national problem and not something unique to St Edmundsbury. One high street retailer has written to every local authority in the country requesting a rescheduling of their debt.

'While these are tough times, sources at the Borough Council tell me that investment is still coming into Bury St Edmunds and that the Cattle Market development is one of the few schemes of its type nationally to still be forecasting a profit.

'We have some excellent local businesses here in Suffolk and I will be doing everything in my power to ensure they are given the help they need to weather this economic storm.'