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BUSINESS RATES, RED HERRINGS AND A MATTER OF CHOICE

In response to yesterday's posting about reducing business rates, I have had a predictable response that Wales can't afford to do this because we haven't got any money to do so.

This is yet another in the long line of excuses fro supporters of the Labour-Plaid Government who have everything to avoid the case for lower business rates in Wales.

To now say that the Assembly has not got the money is simply another red herring.

As was reported from Ieuan Wyn Jones' meeting with business leaders this week in North Wales:

“On business rates, Mr Jones said that any move to bring in additional rate relief of the sort enjoyed by businesses in Scotland would take a £40m chunk out of his department’s £240m budget.”

So there we have it.

Finally, a confession of sorts which clearly states that it is not a matter of money but a matter of choice.

What the Deputy First Minister is indicating is that the current Welsh government is essentially refusing to transfer £40 million from a business support budget - a budget it has had enormous difficulty in spending - to support tens of thousands of indigenous small businesses across Wales through lower business rates.

I would be very grateful if anyone can tell me what is wrong in directly supporting the vast majority of small firms in Wales with a sixth of the economic development department's budget i.e. leaving £200 million to fund the rest of business support programmes?

Of course, if the Minister has problems in cutting this bloated budget - which is higher per head than any other region in the UK - to ensure this happens, then I am sure there are many volunteers in the business community who would be more than happy to help him out.

Comments

GWILYM EUROS ROBERTS said…
Dylan, I blogged about this last week http://gwilymeurosroberts.blogspot.com/2010/03/dwyn-yn-ngolaur-dydd-gan-fusnesau.htmlwhen it became apparent as businesses were receiving their rate bills for the forthcoming year how high the hike for many SME's will be.
In the case of one business I know, it is a staggering 500%!!!
Both Labour and Plaid are out of touch with the business community and such a high increase in non-domestic rates will slow down or indeed stop any possibility of economic recovery in Wales.
Clearly WAG is not up to the job and the whole issue nneds to be reviewed urgently!
March 25, 2010 10:30 am
Anonymous said…
Business rates are in Carl's budget, not IWJ's!
March 25, 2010 11:32 am
Professor Dylan Jones-Evans said…
This comment has been removed by the author.
March 25, 2010 11:53 am
Professor Dylan Jones-Evans said…
And what is stopping the WAG cabinet from transferring business rates to IWJ's brief (as requested by the FSB) or transferring the funds from the Economic Development budget directly to the local government brief to deal with this?

If they really believed in lower business rates as a measure to alleviate the recession.

This is yet another weak and lame excuse to add to the many we have to date and speaks volumes about the current government and its supporters.
March 25, 2010 11:56 am
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