Samuel Kurtz MS has written to the Cabinet Secretary for Finance, Mark Drakeford MS, calling on the Welsh Government to follow the UK Labour Government’s apparent change of direction on business rates in England and warning that rising rateable values are pushing Welsh businesses to the brink.
In his letter, sent following reports that the UK Labour Government is preparing to reverse proposed increases to business rates after strong opposition from the hospitality sector, Mr Kurtz highlights growing concern among businesses across Pembrokeshire and west Wales.
Having spoken to a number of local businesses, Mr Kurtz warns that changes to rateable values, combined with a lack of adequate support, are having a real and damaging impact. Several businesses have closed over the Christmas period, citing extremely challenging economic conditions after successive UK Labour Government Budgets, with some describing increases in business rates as “the straw that broke the camel’s back”.
Commenting, Samuel Kurtz MS, Member of the Senedd for Carmarthen West and South Pembrokeshire, said:
“Businesses do not experience changes to business rates as a technical or neutral exercise. They experience it as higher bills landing on their doormats at a time when overheads are rising and footfall is falling.
“When we are seeing pubs, cafés and shops closing over Christmas, it is clear that the system is not working for the communities it is supposed to serve.”
In his letter, Mr Kurtz asks whether the Welsh Labour Government intends to follow England’s lead by reconsidering increases to business rates, and what action is being taken to support businesses facing sharp rises that could put otherwise viable enterprises out of business.
He has also warned that existing protections and reliefs are failing to reflect the reality on the ground, particularly for small and medium-sized businesses that fall just outside eligibility thresholds.
“Warm words and reassurances about fairness do not pay the bills,” Mr Kurtz said. “What businesses want to know is whether the Welsh Government is prepared to listen, to act, and to prevent more closures on our high streets and in our town centres.”
In response to growing concern, Samuel Kurtz MS and Paul Davies MS will be hosting an online meeting on Monday 26 January at 10:30am for businesses across west Wales to discuss the impact of changes to business rates and give owners the opportunity to share their experiences directly.
The meeting will focus on the real-world impact of rising rateable values on hospitality, tourism and town-centre businesses, and will form part of wider efforts to build the case for fairer, long-term reform of the non-domestic rates system in Wales.
Mr Kurtz has reiterated his call for a more fundamental rethink of business rates policy, including consideration of a freeze or further reduction in the multiplier, wider eligibility for relief, and stronger recognition of the pressures facing rural and coastal economies.
“Unless the Welsh Government changes course,” he said, “we will continue to see businesses close, jobs lost and communities hollowed out.”
