Rural filling stations facing closure because of tax hike

Petrol filling stations in rural areas of Wales are facing closure due to huge increases in their rateable value.

Rateable value increases are due to be implemented in April, 2010, with some filling stations facing increases of as much as 450 per cent, after revaluations by the Valuation Office Agency.

The consequent hikes in rates may force many petrol filling stations to close or to cease selling fuel.

Clwyd West MP, David Jones, said:

“The Valuation Office Agency has based its valuation method on an ill-considered calculation of the rental value of these premises, which is founded on turnover of forecourt shops, rather than square footage.

“This is a particular problem in rural Wales.  There are now only 206 rural petrol stations in the whole of Wales.  Many of these are operating on very tight margins and a big hike in rates may cause them to close.

“After the loss of so many post offices only two years ago, we now face yet another vital service disappearing from our rural areas.

“The effect on businesses in Wales is even more severe than in England, where transitional relief will apply in the first four years.

“The Welsh Assembly Government should carefully consider the impact its plans will have on rural communities in Wales and at least offer transitional relief to retailers already suffering as a consequence of the economic downturn.”

The following table shows the number of filling stations in Wales, broken down by county, with those considered “rural” also shown (figures provided by RMI Petrol Retailers Association):

Region Local Authority Area Open Sites Rural Sites %
WALES ANGLESEY 22 13 59%
WALES BLAENAU GWENT 10 1 10%
WALES BRIDGEND 21 7 33%
WALES CAERPHILLY 22 7 32%
WALES CARDIFF 36 3 8%
WALES CARMARTHENSHIRE 48 20 42%
WALES CEREDIGION 40 25 63%
WALES CONWY 20 8 40%
WALES DENBIGHSHIRE 25 9 36%
WALES FLINTSHIRE 29 15 52%
WALES GWYNEDD 46 19 41%
WALES MERTHYR TYDFIL 6 1 17%
WALES MONMOUTHSHIRE 20 7 35%
WALES NEATH PORT TALBOT 19 5 26%
WALES NEWPORT 17 2 12%
WALES PEMBROKESHIRE 34 15 44%
WALES POWYS 51 27 53%
WALES RHONDDA CYNON TAFF 29 5 17%
WALES SWANSEA 35 6 17%
WALES TORFAEN 10 3 30%
WALES VALE OF GLAMORGAN 13 4 31%
WALES WREXHAM C.B. 19 4 21%
Wales 572 206 36%
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