In a letter to the business secretary Kwasi Kwarteng, the Federation of Small Businesses draws attention to the increased tax bills business owners face if they make net-zero updates to their premises or try to improve staff wellbeing with new amenities.

The letter states that the businesses rates system has created an ‘indefensible’ disincentive to invest in net zero describing the tax system as ‘regressive and outdated’.

The Federation of Small Businesses also provides recommendations that the government should take as part of the businesses rates review that is set to move forward in the autumn.