Rates help for Welsh pubs
The Welsh Assembly Government as promised more help for small firms with their business rates from April.
Currently firms with a rateable value up to £6.500 qualify for a 25% reduction in their rates through rate relief. The threshold will rise to £7,800 from April, when the new rates will be implemented, it was announced today.
The threshold for 50% relief has also increased from firms with a rateable value of £2,000 to those whose figure is up to £2,400.
It comes as many firms prepare to big rises in their rates from April. A survey by Fleurets, revealed by the Morning Advertiser in October, showed the average leased and tenanted pub faces a 23% rise in rateable value.
The Welsh Assembly Government previously announced that the multiplier used to calculate rates bills has also been reduced from 0.489 to 0.409.
Local Government Minister Carl Sargeant said: "The Assembly Government is committed to supporting businesses through the current economic climate and it is important that help those that face an increase in their rate bills as a result of the revaluation exercise.
"However, we also know that there is little appetite for the sort of transitional scheme that operates in England as this would take money away from those businesses who are suffering most during the recession in order to cap increases for businesses that have been more successful.
"I have listened to the concerns of the Federation of Small Businesses (FSB) and the Wales Tourism Alliance. They have told me that they would welcome an increase in the upper thresholds for small business rate relief.
"I propose to introduce a Welsh business rate relief package that will increase the upper limits for each category of small business rate relief by at least 20%."
Janet Jones, chair of the FSB in Wales said: "The above inflation increase in the thresholds of small business rate relief will be an early Christmas present for many businesses in Wales.
"Non-domestic rates pose a higher burden for small businesses and the FSB welcomes the increase in the thresholds to ensure more businesses receive a rate reduction as we called upon the Welsh Government to minimise the effects of the revaluation on business.
"Coupled with the decrease in the multiplier, we hope that this will go a long way to help many of our businesses."
