The Federation of Small Businesses (FSB) has called on the government to allow small firms to have a say over the proposed Business Rate Supplements Bill.

The Bill will impose an extra tax burden on businesses, and the FSB is seeking a number of amendments to ensure that the supplement will only be spent on economic development.

As well as calling for businesses to be consulted and have a vote on all supplements the FSB propose that properties liable for business rates with a rateable value of £50,000 or less be exempt and that the £50,000 threshold is reconsidered once the property market improves.

"With small business failures entering their hundreds each day and taking thousands of jobs with them, it seems counterproductive to introduce a new tax," said John Wright, chairman of the FSB.

"However, if business owners are to pay this supplement it is important that they have a say on where it goes. This revenue must be ring-fenced for economic development rather than to shore up government infrastructure projects and local council budgets."