Plaid Cymru today said that the unfair business rates system should be scrapped – making way for a fairer system of taxation based on profit.
The party’s leader Ieuan Wyn Jones said that in government Plaid had succeeded to bring down business rates, but that the current scheme introduced by the Conservatives would never be fair.
As from 1st October 2010 businesses with a rateable value of up to £6000 will get 100% relief and businesses with rateable value of up to £12,000 will get tapered relief of between 100% and 50%.
Mr Jones said that successive London governments had choked the potential of small businesses. He said that small businesses are vital to the success of the Welsh economy and outlined how Westminster policies such as the current business rates system have stifled the success of small businesses, calling for a series of measures to help them flourish and expand.
During a tour of seats in the south Wales Valleys, the Plaid leader will visit the site of the old Burberry factory in Treorchy which, following multi-million pound investment, has been redeveloped as a business park featuring 15 industrial units and around 10,000 sq ft of offices. It is hoped that the business park will provide important space to support the development of local small businesses. Mr Jones will also visit local high street businesses in the towns of Blackwood and Caerphilly.
Plaid Leader Ieuan Wyn Jones AM said:
“In order for Wales to succeed, our home-grown businesses must succeed. Successive London governments have introduced policy after policy that has stifled the success of our small businesses. London Labour has failed to reverse the unfair business rates system imposed by the Tories when they were in government. The Plaid driven Welsh government is doing all it can to lessen the burden of business rates on small businesses. But fundamentally Plaid believes that the system is unfair and taxation should be calculated according to the profit a business makes. Unfortunately as things stand this can only be changed at a Westminster level.
“In failing to stand up to big business and the banks, the London parties have failed to protect small local businesses. London Labour spent billions bailing out the big city banks and financiers and yet too many Welsh businesses are still unable to get the funding they need to flourish.
“Plaid is calling for a more strategic approach from the London government in order to allow our businesses to grow. We are calling for a special venture capital fund to provide our businesspeople with the funds they need to develop new ideas and to create sustainable jobs across Wales. Publicly owned banks must also be made to increase affordable lending to small businesses that are trying to take the initiative and expand.
“Broadband coverage and communications are vital considerations for any growing business. The government has to invest in order to create the working environment that companies want and need.”
