Businesses in rural Wales face the prospect of massive tax hikes from April, Welsh Conservative analysis has revealed.
The planned business rates revaluation – which Welsh Conservatives have said should be postponed – will hit communities already struggling because of the recession and the loss of local services.
Welsh Conservative analysis reveals:
Tax on rural Wales: Rural Wales will suffer above-inflation rises in business rates, including livestock markets and petrol stations. This comes on top of the loss of local services such as post offices, village shops, and schools.
Tax on tourism: Large parts of Wales, particularly in rural areas, rely on tourism as a mainstay of the local economy. But businesses including pleasure piers, amusement arcades, heritage railways, caravan sites, holiday homes, hotels, and tourist attractions all face big rates rises from April.
Ministers refuse to act: Welsh Conservatives have called on the Assembly Government to follow the example of Northern Ireland which has postponed its rates revaluation because of the harmful effect of large tax rises as the economy emerges from recession. Labour and Plaid Cymru ministers in Cardiff have simply said they do not have the power to do so, and have refused to lobby for a postponement in Wales.
Shadow Minister for the Economy David Melding AM said:
“As the Welsh economy limps out of recession this is the worst possible time for a shake-up of the business rates system.
“Firms large and small will receive inflation busting demands for higher rates next month at exactly the time they need government support.
“With jobs being lost across Wales and businesses reeling from the worst recession since the 1930s imposing higher taxes on them is the last thing they need.
“The Assembly Government had to be dragged into providing the bare minimum of support for Welsh businesses, but their response to date has been nothing short of hopeless.”
