William Graham AM
The concerns of small businesses over exorbitant business rates and demands for reform, raised this week in a letter to the First Minister, were debated in the Assembly Chamber yesterday.
Welsh Conservatives used the debate to call on Welsh Labour Ministers to consider splitting the Welsh business rate multiplier, which determines how much businesses pay in rates.
Scotland and England have different multiplier figures, which means that large firms such as supermarkets pay proportionately more in business rates than small shops.
In Wales, there is a single multiplier, which means that small businesses face the least competitive business rates regime, but major international supermarkets pay less in business rates than anywhere else in the UK.
Business rates are being devolved in full to the Welsh Government in the Wales Bill.
On Tuesday, 70 businesses and chambers of commerce signed a letter to the First Minister calling for an extension to the Business Rate Relief scheme to effectively abolish business rates for all small businesses with rateable values up to £12,000 and tapered relief up to £15,000.
73% of businesses in Wales have a rateable value of £12,000 or under.
William Graham AM, Shadow Minister for Business, said, “It cannot be right that, under Labour, Wales has the most competitive business rates for global supermarket giants, but the least competitive regime for small businesses.
“Small and medium sized businesses are the backbone of the Welsh economy making up over 99% of all firms, but as far as business rates are concerned, Wales is the worst place to set up a small business.
“Splitting the business multiplier could create a level playing field in the Welsh economy and not give major supermarkets a financial advantage over smaller high street shops.
“The private sector in Wales is too small, but it is not going to grow if Labour make it more difficult for people to start up and sustain small business activity.
“Large supermarkets and factories are important employers, but we need to create a level playing field and ensure a balanced economy on the high street where small independent stores can compete with internationally-recognised brands.
“Small businesses tell us that business rates are the biggest barrier to their expansion and the creation of new jobs.
“The Welsh high street already has the highest vacancy rate in the UK with empty and boarded up shops blighting our town centres.
“Labour Ministers must act to reform business rates to encourage entrepreneurship, grow the Welsh economy and make Wales a more prosperous nation.”
