SMALL business owners in Monmouth have been left “gobsmacked” after business rates almost doubled in some cases this week.

With the release by the Valuation Office Agency, (VOA) who work alongside HMRC, of the latest figures for the value of businesses, numerous areas in Wales saw their values fall significantly.

But the value of retail businesses in Monmouthshire rose by 11 per cent, leaving some business owners fearing for their futures.

Donna Harper owns Oasis hair salon on Monnow Street. After her business was valued around two years ago at £9,100, she received notification on Friday that her business is now valued at 14,250. Because businesses valued under £12,000 qualify for small business relief rates, her business rates have nearly doubled; going from around £4,250 to £7,110.

“I was gobsmacked,” she said.

“Most small businesses are struggling at the moment.

“We have been here for 14 or 15 years and I’m worried that we won’t be able to survive. We seem to be punished because we have Waitrose and Marks and Spencer. Everyone thinks we all have loads of money here in Monmouth but it’s not the case.

“The majority of people in Monmouth must be quite worried. I don’t understand how they can get away with this.”

Figures released by the VOA show that Monmouthshire has seen an overall 11 per cent rise in rateable value for retail, the highest in Wales. Surrounding areas Newport and Cardiff have seen values fall by around 20 and 10 per cent respectively.

The VOA sets the ‘rateable value’ of businesses in the UK, taking into account rental costs and the size of the property. From there, business rates are decided by using a ‘multiplier’, set by the Welsh Government, which changes every year. For next year the multiplier is just under 0.5 per cent.

Monmouth Assembly Member Nick Ramsay said: “I’ve been contacted by a number of Monmouthshire businesses who are deeply concerned that the impending sharp increase in business rates could put them out of business. 

“Business rates revenue are collected centrally by the Welsh Government. I am pressing them to explain why Monmouthshire businesses are facing such a hike in rates and why rates here have increased markedly over the last few years whilst falling in neighbouring council areas. It doesn’t make much sense.

“The devolution of business rates to the Assembly provides an opportunity for us to make the system perhaps fairer and more supportive of small businesses. This clearly isn’t the case at the moment.”

A share of £10 million will be available to 7,000 small businesses in Wales who will be affected by the increases.

In a written statement, Mark Drakeford, Cabinet Secretary for Finance and Local Government, set out plans for the Welsh Government-funded scheme to provide relief for small businesses affected.

He wrote: “Non-domestic rates can represent a higher proportion of overheads for small businesses and some are less able than others to adapt to periodic increases in their rates bills.

“The total number of ratepayers eligible for small business rate relief (SBRR) will be largely unchanged by this revaluation – half of all ratepayers will continue to pay no rates and a further 20,000 ratepayers will qualify for tapered relief.

“There will, however, be some businesses whose eligibility for SBRR will be affected by increases in their rateable value following the revaluation.

“To protect these ratepayers, I will lay regulations before the National Assembly to introduce a transitional relief scheme. This will assist those ratepayers who are no longer entitled to the same amount of SBBR as a result of increases in their rateable value following the revaluation.

“The scheme will help these ratepayers by gradually phasing in any increases in the amount they have to pay over a three-year period. This will provide additional support to more than 7,000 ratepayers.”

David Cummings, chairman of Monmouth and District Chamber of Commerce, said the issue would be on the agenda for their upcoming meeting on 21st November.

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