Pembrokeshire’s small businesses have been handed a business rates timebomb, say the county’s Conservative Assembly Members.
Shops, restaurants and hotels across the county have been getting new rateable valuations in the post in the past few weeks.
“I have had an avalanche of calls from worried businesses, some have been told their valuation has increased almost three-fold,” said Angela Burns AM.
Businesses will be told their new rates bill on April 1st next year but it will be based on the rental valuation of their property which was taken on April 1st 2008 – when property prices peaked.
“Everyone is now on tenterhooks waiting to see what the final figure will be and it is causing real stress for many small businesses,” said Preseli Pembrokeshire AM Paul Davies.
“It is very difficult for them to budget effectively when they don’t know exactly how great the tax hike will be.”
Research undertaken by the Welsh Conservatives has revealed that Tenby’s hotels will be facing an average increase of 27 per cent in their business rates for 2010, equivalent to an average of £2,800 per business.
“If this research is accurate and reflected around the county then it could be the final nail in the coffin for struggling businesses,” said Mrs Burns.
Mr Davies continued: “Unlike other forms of taxation on firms, business rates remain the same regardless of performance as it is based on the property occupied by the business and not on turnover or profitability.
“It is a fixed cost that must be paid regardless of success. I fear that higher rates could be the difference between swimming and sinking for many of our smaller high street shops and businesses.
“The Conservatives have pledged to exempt companies with a rateable value of £10,000 or less from paying rates and to give tapered relief for firms worth up to £15,000. It would be the best way to help the Welsh economy out of recession.”
Photograph: Angela Burns AM
