Welsh Liberal Democrats "Vindicated" over new rate relief scheme

3.39.02pm UTC (GMT +0000) Wed 28th Mar 2007

Welsh Liberal Democrat Assembly Member for Montgomeryshire, Mick Bates, has slammed the Labour Assembly Government's failure to offer 'transitional assistance' to rural businesses ahead of the replacement of the Rural Rate Relief Scheme, which may lead to the closure of many businesses in Montgomeryshire.

Mick said,

"Many owners of small businesses locally have indicated to me that the revised Rate Relief Scheme will have such an impact upon their business that in all likelihood they will cease trading. Fuel costs, insurance and red tape for small rural businesses have increased dramatically over the last few years meaning owners must work harder for less return. A recent 2000% increase on the charges for an alcohol license led to the closure of at least one business. This latest rate increase will lead to the closure of many others.

"Many rural businesses had discretionary relief in recent years, the Council has yet to provide details of a scheme for the coming year. It is unrealistic to expect any small business to stand a bill for rates that may be 25-50% more than it was in the previous year! Certain types of businesses have been hit really hard such as holiday cottages, pubs and petrol stations. In rural Montgomeryshire we can ill afford to loose any more of these vital community facilities.

Mick added further,

"It appears the Assembly Government has made a serious error in failing to offer transitional aid to hard hit rural businesses.

"As I argued in the Assembly, we have real concerns for the impact the immediate introduction of this scheme may have on small businesses in my constituency who are trying to sustain themselves by providing a valuable local service. The Labour Assembly Government rejected this most sensible of ideas, proving once and for all they out-of-touch with rural areas."

Ends/diwedd

Notes:

· In December 2006, the Assembly voted to replace the existing rural rate relief scheme with a scheme that would support small businesses across Wales, regardless of rurality. These changes will come into force on April 1st.

· Welsh Liberal Democrats argued for a transitional period to aid those affected businesses during the cross-over period. This was rejected by the Labour Assembly Government. The full statement will be published on the Assembly Government website (www.wales.gov.uk), or can be provided on request.

· Mick Bates and the Welsh Liberal Democrats lead the campaign in the Assembly for a transitional 'bedding-in' period for businesses affected by the replacement of the Small Business Rate Relief Scheme with the Rural Rate Relief Scheme as, he argued, their would be a knock-on effect for many small rural businesses which may force some to cease trading . The proposal was defeated by the Labour Assembly Government.