Aberconwy Assembly Member, Janet Finch-Saunders, has welcomed moves by Conwy County Borough Council to adopt the Welsh Government’s High Street Relief scheme, but has warned that much more needs to be offered to save local high streets.
The Welsh Government announced £10m of support for a High Street Relief scheme which is to be made available for the 2017-2018 financial year to support businesses in the retail sector in Wales.
Conwy has been granted up to £967,190 in relation to the scheme for the financial year 2017-2018.
According to the Council, there are approximately 745 businesses in Conwy which may benefit from this scheme – these will be occupied high street properties which are used wholly or mainly as shops, restaurants, cafes and drinking establishments, with a rateable value of £50,000 or less on 1st April 2017.
Janet said:
“Having been approached by many businesses in my constituency, I know this increased support for our high street businesses will be welcomed. This will be vital to many who have faced unbelievable hikes in their rates bills following the recent revaluation.
“Conwy County Borough Council must ensure that the administration of this relief is efficient and reliable – many businesses are extremely concerned about their future and the sooner that they are able to be made aware of the relief available to them the better.
“However, for some who have already been forced out of the market, this is too little, too late – the Welsh Government should have responded much quicker to the impact of the revaluation, as the UK Government did.”
The UK Government have set aside £3.6bn for transitional relief for business in England, where the multiplier – a key factor in calculating the rateable value of a property – is already lower. The proportionate amount for Wales should be around 5% of this – around £180m.
Janet added:
“Much more needs to be done to ensure a sustainable future for our high streets - it is important to look at long term solutions as well as short term relief. I will continue to call on the Welsh Government to reduce the multiplier which impacts on how rateable values are calculated.
“I hope also that the Welsh Government sees fit to extend support to businesses outside of our traditional high streets – the recent rates increases have hit all sectors hard, particularly the industrial sector which has seen the highest increases in Conwy.”
ENDS
Notes [hyperlinks underlined]:
The full report to the Cabinet is available here – was considered by the Cabinet on 11-04-2017, 2pm.
The Small Business Rate Relief (SBRR) scheme has been extended until 31st March 2018, with the Welsh Government intending to bring forward a permanent scheme after this date.
Whilst continued relief has been welcomed, the FSB have criticised the Welsh Government of spin on their promised of a ‘tax cut’ for small businesses.
At present, businesses with a Rateable Value of £6,000 or less already receive 100% relief under the SBRR Scheme. Those businesses with a rateable value between £6,001 and £12,000 receive a tapered relief.
It is intended that this scheme will provide up to £500 discount (Tier 1) and £1,500 (Tier 2) on the Business Rates bill to all occupied, qualifying retail premises with a rateable value of less than £50,000 in the financial year of 2017/2018, subject to State Aid limits, which currently stand at €200,000 over a three year period.
Grant funding will be made available to local authorities to operate the scheme in their area in 2017-18, using their discretionary powers contained in section 47 of the Local Government Finance Act (LGFA) 1988.
The High Street Relief scheme will be granted as a one-off payment to businesses based on occupation as at 31st March 2017, provided that the same occupier continues to be in occupation on 1st April 2017.
Currently there are 5,308 properties on the rating list in Conwy. Of these, 3,008 receive either full or partial relief under the SBRR scheme. A further 325 receive Charitable Relief. Approximately 441 hereditaments are empty.
Properties that will benefit from the High Street Relief scheme will be occupied high street properties which are used wholly or mainly as shops, restaurants, cafes and drinking establishments, with a rateable value of £50,000 or less on 1st April 2017.
It is proposed that in order to maximise take up and minimise the administrative burden, the relief is granted under section 47 of the LGFA 1988 automatically to those meeting the qualifying criteria, without the need for an application form. Once the HSR has been granted, a revised rates demand notice will be issued for 2017/2018.
Welsh Conservatives have been calling for improved relief for small businesses for many years – and would like to see full relief for businesses with up to £12,000 rateable value, and tapered relief for those with a rateable value of £12,001 – £15,000. More on this and the Welsh Conservatives ‘A Vision for the Welsh High Street’ is available here.
Janet Finch-Saunders AM has previously highlighted that Conwy faces the highest average rates increases in Wales.
Conwy has seen the highest total percentage increase change in rateable values from the 2010 figures to the recent 2017 valuation, with the industry sector being hardest hit with an average increase of 15.8% across the county.
Percentage changes in rateable values between 2010 and 2017 valuations by local authority and sector – see table
