8. Will the First Minister make a statement on the Welsh Government's policy on business rates? OAQ(5)0251(FM)

We’re committed to supporting small businesses through our small business rates relief scheme and transitional relief.

Thank you, First Minister. Small businesses tell me that they are hanging on by their fingernails. There are some winners as a result of the recent revaluation, but there are many, many more losers. I received an e-mail last night, at midnight, from a small business owner outside of my constituency who had seen that I was going to be asking this question today—she felt so strongly about it tha she contacted me to say that her revaluation has resulted in a 48 per cent increase in her rateable value. I know that many business owners and their employees are desperate for this Government to consider introducing the same terms around small business rate relief that the UK Government have. They’ve responded to the consultation that you guys have asked for and that’s what they’ve said. So, the question, really, I’ve got for you is: are you going to listen to them?

I would argue that what we have in place is more generous now than is the case in England. Why? Because it reaches more businesses. Seventy per cent of businesses will receive some form of support through the business rates relief scheme, over half of eligible businesses will pay no rates at all—that is far in excess as a percentage of businesses than is the case under the system in England, although it would appear on the surface to be more generous. But, in fact, the reach of the Welsh scheme is deeper. That said, of course, we do recognise there may be some businesses that will lose out as a result of revaluation, as there always are whenever there is revaluation, which is why we will be introducing the transitional rate relief scheme.

First Minister, Labour candidates in the Assembly elections this year met with small businesses across Powys during the election campaign and told them, ‘Vote Labour and get a tax cut’. I do quote one candidate who said:

‘Business rates tend to form a higher proportion of the total operating costs for small businesses and…many Powys businesses are under serious financial pressure, and so will breathe a sigh of relief if Labour is returned on May 5’.

Many of these businesses that were being referred to are now facing a business rate hike, so what do you say to these businesses that were told by Labour candidates that they would get a tax cut in their business rates, but will now be paying more in business rates?

They clearly are, because, as I say, 70 per cent are having a tax cut as a result of a scheme that has been temporary, but renewed every year for some years. There is no permanence to the current scheme. We are introducing a permanent scheme next year in order to make sure that we have a scheme that is durable, because businesses cannot exist on a system where the rates relief scheme is simply renewed every year, without them knowing whether it will be or not. We’ll continue to make sure that the vast majority of Welsh businesses get the relief that they need.