5. Will the First Minister provide an update on his discussions with local authorities regarding business rate revaluation? OAQ(5)0277(FM)

The Valuation Office Agency is the independent, statutory body responsible for carrying out the revaluation for non-domestic rating purposes. It published the draft rating list on 30 September, and ratepayers can check their valuations prior to the new list coming into force on 1 April next year.

Thank you, First Minister. As you know, the impending business rate revaluation continues to be a source of considerable concern for businesses, in some parts of Wales—I accept, not all, but certainly in my area of Wales. The Monmouth chamber of commerce met yesterday to discuss the hike in rates that many of the members are facing, and only this morning, I’ve received an e-mail from a business in Chepstow that is facing a potential doubling of its rates next year. This threatens the future viability of many of these businesses. Can you update us on your discussions with chambers of commerce across Wales and, indeed, other stakeholders and businesses, and tell us what you’re going to do to allay these concerns? I know you’re going to be making an announcement in due course about business rate relief. How will you tailor that to the needs of those businesses that are going to be worst affected by the revaluation?

The point he makes is a fair one. We have a consultation ongoing at the moment. The responses to that consultation have come almost entirely from Monmouth and Cowbridge, so, clearly, there is an issue there for businesses in those two towns. Those who have benefited tend to be silent on these issues. So, in examining the issues that they have raised, that will help us to put in place a transitional scheme that will be as effective as possible for those two towns. I’m not saying it only applies in those two towns, but the effect has been most marked there. Of course, it’s a matter for the Valuation Office Agency as to how these valuations take place, but we want to make sure that, by listening to businesses, we can get the right scheme in place for the transitional phase.

I think the First Minister will know that I’ve raised with him other cases from north Wales, actually, when I asked him about the effects of the revaluation and the hikes that businesses there have been experiencing. So, I think it is clear that a number of businesses throughout Wales are facing an extreme increase in their liabilities as a result of the revaluation. So, would he look again at the level of transitional relief that is provided and whether more can be done there? We are in this odd position of the revaluation happening and then, a year later, there is going to be a more fundamental reform of the business rate scheme. As a result of that, wouldn’t it be sensible to look as to whether the transitional relief provided is sufficient to provide succour to some of the businesses affected?

Yes, and we’ll do that as part of the consultation. He’s right, there will be businesses that have seen a significant increase in business rates; others will have seen the exact opposite. It’s revenue neutral in its intention, in any event, but, yes, the transitional scheme is designed to be brought in as soon as is possible after the consultation has taken place, in order to provide help on a transitional basis, and then, of course, we will look at what the permanent scheme actually looks like.