A PERMANENT rate relief scheme for businesses will be implemented from April 2018, after the fund was introduced last Wednesday (13th December).

The new permanent small business rate relief scheme was announced by Welsh Government finance secretary Mark Drakeford last week, allowing relief to be targeted more effectively to support small and local businesses and release £7m every year to be re-invested to support small businesses.  

The scheme will limit the number of properties eligible for rate relief to two per business in each local authority, preventing larger businesses and national chains from benefiting from the scheme.

In addition to providing more than £110m of support for small businesses in Wales every year, Professor Drakeford said the new permanent small business rate relief (SBRR) scheme will also provide additional support for the childcare sector, increasing the upper threshold for rates relief for childcare providers from £12,000 to £20,500, and provide targeted support for small hydropower projects, in line with the budget agreement with Plaid Cymru.

The scheme also includes £5m to extend the temporary high street rates relief scheme into 2018-19, and an extra £1.3m for local authorities for 2018-19, for them to use their discretionary powers to provide targeted relief to support local businesses which would benefit most from additional assistance.

It was also announced that an extra £9m and £22m will be allocated in the final budget in 2018-19 and 2019-20 respectively, to support the switch from RPI to CPI for business rates from April 2018.

However, the news has been met with some scepticism, particularly from business leaders in the area.

David Cummings, chair of Monmouth and District Chamber of Trade and Commerce, said the organisation was “disappointed” by some aspects of the scheme.

“We are disappointed that the SBRR support levels have not been increased to those in operation in England and Wales,” he said. “We regret that our proposals to see empty Grade II listed commercial premises have their eligibility to long term rate relief removed and to limit the level of support for business rate relief for national charities, have not been included in the proposals. Also, the special relief for retailers with rateable values between £10,501 and £11,000 has not been continued.

“We are pleased that the High Street Rate Relief Scheme will be continued for 2018/19, but at only half the level of financial support of 2017/18.

“We welcome £1.3 million for local authorities to provide targeted support. However, with only approximately four per cent of the businesses with Non-Domestic Rateable premises in Wales, the amount coming to Monmouthshire will be small.”

Professor Drakeford said: “I have previously set out my intention to introduce a permanent small business rates relief scheme from 1st April 2018.  

“This year, we have provided small businesses with more than £110m of support to help them pay their bills. Our permanent scheme, which will be in place from 1st April, will maintain this level of support from the Welsh Government.  

“In line with our tax principles, the permanent scheme will target support more effectively towards those businesses which will benefit most – supporting jobs and growth and delivering wider benefits for our local communities.  

“My intention is to take a progressive, fair and transparent approach towards local taxation in Wales, which continues to provide vital funding for local services.  

“Delivering a permanent relief scheme for small businesses is a key step in delivering this.”

Changes to the SBRR scheme are being introduced following a public consultation on a permanent scheme in the autumn.

The plans were also given a cautious welcome by Monmouth Assembly Member Nick Ramsay. Speaking during last week’s plenary session, Mr Ramsay said the new permanent scheme was desperately needed.

“The new scheme has been framed to meet Welsh needs but I am concerned that it may not tick all the boxes and that there will be ‘notspots’ so to speak, particularly in my constituency,” he said.

“I was pleased to receive an assurance from the Welsh Government’s Cabinet Minister for Finance, Mark Drakeford AM, that the new scheme would be kept under review and that new ways will be sought to improve it further in the future.

“A permanent scheme is a step in the right direction but I’m concerned that businesses in Monmouthshire need more help to make ends meet and I will be pressing for this in the new year.”