4. Will the First Minister make a statement on levels of business rates in Wales? OAQ(5)0231(FM)

For 2017-18, the estimated amount of non-domestic rates that will be distributed to local authorities and police and crime commissioners in Wales is £1.059 billion. That is set out in the draft budget.

Thank you, First Minister. I’m sure you’re aware of the massive new level of uncertainty, particularly in rural areas, that’s been heaped on small businesses by the huge cost swings resulting from business rate revaluation. Now, I appreciate that overall it’s cost neutral and there are always going to be winners and losers, but businesses in Monmouthshire are facing an 11 per cent hike in their rates that, if implemented, will threaten to put many of them out of business. Do you agree that we need to fully understand the consequences of this revaluation before the implementation, and at the very least look to provide support for those businesses worst affected?

There will be support because, in response to the revaluation, a new £10 million transitional relief scheme will be introduced to assist small businesses whose entitlement to small business rate relief is adversely affected. That will be fully funded by the Welsh Government.

First Minister, the steel industry is still in crisis. It hasn’t disappeared. We still have many issues and challenges facing us, even though the workforces across Wales have actually shown commitment to improving profitability. What is your Government looking to do on business rates? This was an issue, very much so, early in the year and plant and machinery exemptions were considered. Will you be looking at that again, and will you be looking at business rates for the steel industry?

Well, I can say that the data from the current revaluation do indicate that the rateable value of the steel industry as a whole in Wales will decrease significantly. That will be of help to them. So we do anticipate that that will be part of the package that will assist the steel industry.

We have already put a package on the table. We need to see action now from the UK Government when it comes to pensions and when it comes to energy prices. So far, we have not seen sufficient action from the UK Government. We keep on urging them to show resolve in the future.

A number of businesses, particularly in rural areas, have been in touch with Plaid Cymru Members to discuss the impact of the increase that they’re currently facing—for example, a pub is facing an increase of 200 per cent. We are talking about thousands here. We have an example of the Vale Country Club, which arranges wedding in Ruthin, and their rateable value is going to increase from £9,600 to £23,000. The First Minister will understand, of course, the impact that that kind of change is going to have on that business and similar businesses. Is it perhaps an opportunity to look at the amount that he’s mentioned that’s been set aside for pro tem assistance, to ensure that we don’t see this staggering increase for some marginal businesses, in order to ensure that they don’t close because of these increases in business rates?

I understand the point, of course, but I am confident that the scheme that I’ve already alluded to will assist many of the businesses that have seen an increase in the sum that they need to pay.

We must remember that, with the majority of businesses, the last time they went through this process was back in 2008, when the economy was in a much better state, historically, and the level of rates that they would have been paying would have been much higher. We’ve already seen this in the steel industry. Of course, it doesn’t mean to say that every business is in the same position, but because we’ve identified the fact that some businesses will see an increase, that is why this pro tem scheme has been put in place.

First Minister, just over a third of business premises in England and Northern Ireland, and just under half in Scotland, currently benefit from business rate relief compared to over 70 per cent of Welsh businesses. I look forward to the publication of the Welsh Government’s permanent rate relief scheme for small businesses, but will the Welsh Government make sure that this is still the most generous rate relief package within the UK?

We will look to provide, and on top of that we want to provide certainty for a scheme that’s always been temporary, despite the fact that it’s been renewed for a number of years. But we need to make sure that that certainty is there for businesses so that they can plan going forward.