Posted: Fri 16th Sep 2016

Updated: Sun 1st Jan

Business rate boost welcomed in Deeside

News and Info from Deeside, Flintshire, North Wales
This article is old - Published: Friday, Sep 16th, 2016

A rate relief boost for businesses across Flintshire has been welcomed by an AM.

Alyn and Deeside AM Carl Sargeant was speaking as it was announced that the Welsh Labour Government’s £98 million Small Business Rates Relief scheme will be extended for 2017-18, with a new permanent scheme coming into force from 2018.

The announcement meets the Welsh Labour manifesto pledge to “Deliver a tax cut, meaning smaller bills for 70,000 businesses and bills reduced to zero for half of all eligible firms.”

The Small Business Rates Relief scheme will benefit 70 per cent of small businesses in Wales, and about half of all eligible businesses in Wales will pay no rates at all.

Carl Sargeant said:

“Businesses in Alyn and Deeside have told me that this Welsh Labour Government scheme has really helped them. I know they will be so pleased to hear that this vital source of support will continue, helping them ensure their sustainability for the future.

“I hope it will also encourage new businesses to our high streets. This is great news for businesses all across Flintshire and another example of the Welsh Labour Government’s commitment to supporting businesses across Wales.”

In Flintshire, 5,290 business properties are liable for non-domestic rates.

[miptheme_quote author=”Steven Goodrum Clerk and Finance Officer at Connah’s Quay Town Council” style=”boxquote text-left”]The Town Council welcomes any scheme that helps support existing local small businesses and hopes that schemes such as this will also bring new businesses into the town. We will continue to work with and support local businesses and landlords to show Connah’s Quay is a great place to do business.[/miptheme_quote]

Under the scheme, business premises with a rateable value of up to £6,000 will receive 100 per cent relief and those with a rateable value between £6,001 and £12,000 will receive relief on a tapered basis from 100 per cent to zero.

Shadow Economy Secretary, Russell George responding to the business rate announcement, accused the Welsh Labour Government of breaking its pre-election pledge to “offer a tax cut for all small businesses”.

Shadow Economy Secretary, Russell George, said:

“Labour went to the Welsh electorate pledging to cut taxes for small businesses, and just weeks later that promise has already been broken.

“This announcement provides no long term certainty for those firms, and once again postpones the introduction of a permanent scheme which could offer meaningful support to the 99% of businesses that make up the Welsh economy.

“There are no changes to the thresholds for rate relief, despite a clear manifesto pledge.

“Furthermore, the Welsh Government has ducked the opportunity to look at a small business multiplier, which could have levelled the playing field with bigger firms.

“This is a missed opportunity, and small Welsh firms will be wondering what this statement actually adds beyond uncertainty.”

Based on figures in the UK Government’s Budget, the Welsh Government’s small business rates relief scheme will benefit a greater proportion of smaller businesses than England’s equivalent scheme.

The UK Government estimates 600,000 small businesses in England, a third of all liable non domestic properties will pay no rates and an additional 50,000 will benefit from tapered relief.

In Wales, more than half of all eligible businesses will pay no rates. This is because there is a higher proportion of small businesses in Wales with the average property size in Wales being smaller than in England.

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