The Federation of Small Businesses (FSB) has said that a Welsh tourism tax should be “off the table” in the short term while the sector recovers from the pandemic.
FSB Wales has called for no additional costs and taxes for small businesses during post-Covid recovery and viewed any ‘alfresco tax’ - which would add a levy to businesses with outdoor dining spaces - as a mistake.
It said that, following winter seasons since March 2020, it was “not the time to raise the prospect of more costs and tax on a key Welsh industry that is particularly vulnerable at present”.
The Welsh Government recently announced that it will start a consultation on proposals for a tourism tax in Wales this autumn in a move that has been attacked by the tourism sector. The Government said it would provide a platform for a range of views to be considered.
In addition to the tourism tax, FSB Wales also called for local authorities to provide business rates relief, promote in-town development, and encourage better links between businesses and academia and bridge the gap between the training and education system and local SMEs.
The proposals were made in FSB Wales’ local government manifesto, Our Business is Wales - Our Business is Local, which sets out a list of requests for local government to consider ahead of the local elections.
FSB Wales also proposed for a small business engagement forum in each local authority and take steps to actively engage with hard-to-reach businesses and diverse groups including women and ethnic minorities.
It suggested local government work with the Development Bank of Wales and other institutions for a long-term outlook and to build capacity on business development and finance options.
FSB policy chair Ben Francis said: “In the past two years, local government has been essential in supporting businesses through the pandemic, a role that will continue to be crucial for the recovery and beyond. Only local government can help businesses articulate what is relevant locally, providing an important touch point between the economy and political decision makers.
“We see local government as essential to the success of every small business in Wales and this importance will increase as the UK Government develops its Levelling Up agenda which will require new partnerships between business and local decision makers.”
Mr Francis added: “We are calling for the promotion of thriving high streets, with independently owned small businesses. We hope to see that councils have learned the lessons of what worked well during Covid-19, such as lessening the planning burden on businesses and working a pro-small business culture throughout local authorities.
“We want SMEs to be at the heart of local government’s thinking on the economy, and for the value and drive they bring to local communities.
“Local governments must work together with prescribed bodies, including both Welsh and UK governments to ensure a joined-up approach to supporting businesses is embedded fully within the recovery.
“There are already opportunities through collaborations such as Growth and City Deals that are primely placed and ready to aid growth. We hope to see these partnerships continue to develop, as they push thinking on economic development in the regions.”
