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THE BUDGET AND BUSINESS RATES

Having finally got in from Turku University - we are two hours ahead here - I have had a chance to look at the Budget announced earlier this afternoon.

I am still trying to digest all the information but the one issue that really did catch my eye, given my policy interest in the area, was the proposal on business rates.

Having checked this up on the Treasury website, the following information was provided:

"To provide help with the fixed costs of starting and running a small business, the Government will fund a temporary increase in the level of small business rate relief, so that eligible small businesses occupying properties with rateable values up to £6,000 will pay no business rates for one year from October. In addition, small businesses benefiting from the rate relief taper (rateable values up to £12,000) will receive significant reductions. It is estimated that over half a million businesses across England will benefit, many by well over £1,000. Around three quarters of all small business units, two thirds of smaller shops and over half of offices and smaller industrial premises will qualify if occupied by an eligible business."

Of course, given that we have quite a different rate relief system to England, we will wait to see how (or if) this applies to Wales (strangely, there is no announcement on the press release for Wales from the Treasury).

The main point about this announcement is that it contrasts with the attitudes of Labour Assembly members, and their Plaid Cymru colleagues, who have vehemently opposed introducing any cuts in business rates as a method of alleviating the recession for tens of thousands of small businesses across Wales.

They could have, at any time during the last twelve months, have introduced a similar scheme to support Welsh firms but they refused to time and time again.

Will any of us be surprised if they will all now hypocritically jump onboard the bandwagon to announce what a brilliant idea it is to cut business rates for small firms across Wales?

Just a shame they had neither the imagination nor the political courage to do when Welsh businesses needed this cut the most at the height of the recession last year.

Comments

Anonymous said…
It will be interesting to see if there is Barnett consequentials. I don't think that anybody would argue that business rates should be lower, Dylan, just that the budget at the Assembly does not allow for a more generous settlement.

If there are consequentials, then the Assembly could look a more generous rates system then.

By the way, the Assembly does not have a lot of power over business rates, as you claim.
March 24, 2010 8:19 pm
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