9. 5. Plaid Cymru Debate: Small Businesses

Part of the debate – in the Senedd at 3:50 pm on 30 November 2016.

Alert me about debates like this

Photo of Nick Ramsay Nick Ramsay Conservative 3:50, 30 November 2016

Diolch, Presiding Officer. I’m pleased to contribute to this debate and to move the Welsh Conservatives’ amendments in Paul Davies’s name. As our amendments highlight, Wales has the worst high-street vacancy rate in the UK, and footfall is down by 1.4 per cent, compared with October 2015. Okay, one of many statistics, but an important statistic nonetheless. I think we are all very well aware of the important role our high streets play in local economies across Wales, and that’s in urban and rural parts of Wales. We’ve had many, many debates—some of us more than others—in this Chamber about this over the years. I’ve spoken in many of them, and, in the last Assembly, I chaired the Enterprise and Business Committee’s report into high-street regeneration. I’ve got a copy of it here. It still makes very pertinent reading. That report made a number of recommendations—21, in fact. How many of those recommendations that were accepted at the time by the Welsh Government have been acted on? Indeed, in those days, the revaluation was not even on our radar, but there were other issues to do with the decline of our high streets that were on the radar, and which the Welsh Government was aware of. Three years on, I think it is important we do have an update on the implementation of those recommendations.

There’s no doubt at all that we need an integrated approach, which involves a close relationship between the Welsh Government on the one hand, the retail industry, a simplified planning system, and business rate reform. Of course, although this is one of those catch-all, or catch-many-things, motions that includes many different aspects, uppermost in our minds over the last few weeks has been the impact of the business rates revaluation. I have to say, turning to the Government’s amendment to this motion—well, it’s almost an alternative motion, I suppose you would call it—yes, we know that the revaluation is not designed to raise additional revenue, and we know that, overall, rates have fallen, but that doesn’t help those businesses that have been affected by an increase in rates. Let’s not forget that those businesses that have seen increases have, in many cases, seen nothing less than eye-watering increases. Only yesterday I received an e-mail from a constituent with a business in Tintern, who said, I quote, ‘It is with concern that I note the increase to my business rates of 60 per cent, which I think is unreasonable, unjustifiable and plainly diabolical. We are a visitor centre, which we could not run from a lock-up shop.’— Could not run from an internet site, indeed. ‘There is no admission charge. Your decision’—and this was addressed primarily to the Valuation Office Agency, copied to me—’Your decision will ultimately be the making of whether we continue in business or not.’

There was another one received a couple of days ago: ‘I’ve just received the revised rateable value for my business, and due to, at present, a non-increase in the small business rate relief threshold, my business will be charged, for 2017, nearly £2,500 that it is not charged now. I cannot support this cost and it will cause my business to close.’ The e-mail goes on: ‘Can you please advise how this can be avoided, or please come to my shop-closing sale that I intend to hold?’

Heart-wrenching, heart-rending e-mails from people who are at the end of their tether now they realise the effect that this will have on their businesses.

Cabinet Secretary, this is a deeply worrying situation. If nothing is done, we could see a loss of small businesses next year on a scale not previously seen, at least in those parts of Wales where the worst effects are seen. That will have a knock-on effect for high streets, employment and shoppers. This cannot be the intention. I’m sure it’s not the intention of the revaluation or the Welsh Government. Our businesses need action and reassurance, so we therefore support the call to expand the transitional relief available to small businesses affected by this revaluation. These aren’t just statistics; these are real people with livelihoods, staff to employ, and families to raise. Making ends meet can be difficult enough, as we know, without these sorts of rates hikes.

As the motion says, the current business rates system places a disproportionate burden on small businesses here, compared with the rest of the UK. At the end of the day, this is also a question of fairness. The Labour Party have always proclaimed to be the party of fairness—or always did—so, I don’t see how you can stand by and allow such a disparity to develop between the winners and the losers, both within Wales and, indeed, between Wales and across the border, where we have seen different relief support packages coming through.

To close, Presiding Officer, and just turning briefly to the last parts of the motion, we believe a target to increase procurement levels is a good idea. Levels of Welsh procurement are way less than they should be. I met with a local engineering firm in Chepstow last year that had given up on applying for contracts this side of the border because of the dominance of larger firms in the process. So, we need a greater weighting towards local firms and, yes, a buy-local strategy would be a very positive development. So, there’s a lot of good things in this motion. In conclusion, I thank Plaid Cymru for bringing it forward. Let’s get on with the job of regenerating our high streets and providing necessary support for our local businesses, so that they may flourish, put money back into the local economy, and improve the local economic environment for everyone.