Business leaders have called on the Welsh Government to at a minimum freeze business rates for the next 2023-24 financial year.
Some 15 business representative group and industry bodies, including CBI Wales, FSB Wales and the Wales Tourism Alliance, have written to Finance Minister. Rebecca Evans, urging her not to increase the multiplier rate on business rates (currently 0.53 which is times rateable values) and follow next year’s freeze applied to England announced by Chancellor Jeremy Hunt in the recent Autumn Statement.
They say that the business rate multiplier in Wales is at a 23-year high and greater than in England. The Welsh Government will confirmed its business rate and relief threshold regime for 2023-24 when it publishes its budget on December 13th.
The letter to the minister says: “We fully recognise that the Welsh Government, like business, is facing its own costs and inflationary pressures at the present time. We note too that headway has been made in recent years on broader aspects of rates reform including your current consultation into more fundamental reform.
“Yet, after two turbulent years of the pandemic the fact is trading conditions remain challenging, the cost of doing business is spiralling, and the near-term economic outlook is weak. Given the decision taken in the UK Autumn Statement we ask that at the very least Welsh ministers follow suit and similarly freeze the headline business rate multiplier in the coming financial year.
"This would aid firms with the costs crisis, help them keep down prices for customers, support business investment, and ensure there is not an even greater discrepancy between the Welsh business rate and that which applies across the border.
"Our organisations have a range of ideas on how the Welsh rates system could be improved. However, we collectively believe this practical measure to at least freeze the business rate requires to be taken in your upcoming Welsh Budget, which would be a positive step applicable to all commercial premises and help ease the burden at this difficult time.”
In response a Welsh Government spokesman said: “We appreciate how difficult recent years have been for businesses, and the ongoing challenges caused by the cost-of-living crisis. We are assessing options for providing support for ratepayers and any agreed package will be tailored to best support the needs of Wales. We will confirm details of change to business rates in Wales for the coming financial year in our Budget later this month.”
Signatories
The letter is signed by: Sara Jones head of the Welsh Retail Consortium; Jason Birks national president, National Federation of Retail Newsagents; Debbie Bryce chief executive, West Cheshire & North Wales Chamber of Commerce; David Chapman executive director Wales, UK Hospitality; Phil Clapp chief Executive, UK Cinema Association; Ben Cottam head, FSB Wales; Howard Davies head of policy and public affairs, the Bookseller’s Association; Suzy Davies chair, Wales Tourism Alliance; Huw Edwards chief executive,UKActive Andrew Goodacre chief executive, British Independent Retailers Association; James Lowman chief executive, Association of Convenience Stores; Ian Price director, CBI Wales; Janis Richards membership director Wales, Make UK; Richard Selby executive chair, Institute of Directors in Wales and Paul Slevin executive chair, Chambers Wales.
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