Well, I do welcome the opportunity to respond to this debate and it is an important time for policy development with regard to non-domestic rates. I do recognise the experience that we’ve got here in this Chamber as well as the policy views that have been expressed today.

Non-domestic rates contribute more than £1 billion a year to fund vital local services in Wales and all the rates revenue collected in Wales is redistributed in full to local authorities and police and crime commissioners here in Wales to support these services. We pay taxes because we all get the collective benefits of doing so. The local services that non-domestic rates support are absolutely the ones that businesses need in order to be successful. To maintain these services, it’s right that everyone who is able to contributes their fair share.

Non-domestic rates apply to most forms of non-domestic property, including car parks and out-of-town retail parks. They don’t just apply to businesses. They apply to property occupied by the public sector, of course, and not-for-profit organisations. The rates system was specifically designed to be a tax on property to raise revenue for local services. It’s not a tax on turnover or profit; these are subject to other forms of taxation levied by the UK Government and used for other purposes.

Nick Ramsay has reminded us that the valuation of property is carried out by the Valuation Office Agency. The VOA is independent of the Welsh Government. It determines the methodology for valuing property and applies the same methodology across the country, taking account of local property market conditions.

The Welsh Government recognises that not all rate payers have the same capacity to pay, particularly small businesses, where the rates can represent a higher proportion of their overall costs. That’s why we are providing over £200 million of financial assistance as rates relief in this financial year, 2017-18, and this is supporting more than three quarters of all rate payers. Over £100 million for a small business rates relief scheme already supports almost 70 per cent of businesses in Wales, and over half of all eligible businesses pay no rates at all. This scheme was due to end on 31 March of this year, but we’ve extended it for 2017-18. Without this support, small businesses in Wales would be facing higher tax bills.

We’ve also made it a clear commitment to put a new, permanent, small business rates relief scheme in place from April 2018. As has been said and acknowledged today in this Chamber—and why it’s so topical, of course—we’re currently consulting on proposals for this new relief scheme, with the consultation closing later this week. I’m sure those submissions—I’m sure we’ve seen them from our constituencies and businesses and bodies, leading up to the close of that consultation.

This consultation is important. It seeks views on how the relief could be better targeted to support those businesses that would benefit most and those that would contribute more to the growth of the Welsh economy and the sustainability of our communities. The consultation also considers how the permanent scheme could be developed to support wider Welsh Government objectives. So, it explores, for example, the option of providing additional relief to certain industries or sectors, such as childcare. There needs to, of course, be a robust evidence base for us to consider those options.

This permanent relief scheme will provide certainty and security for small businesses, delivering a tax cut and helping them to drive long-term economic growth for Wales. The introduction of a permanent small business rates relief scheme that is tailored to the specific needs of Wales clearly demonstrates the importance we place on supporting small businesses by reducing their non-domestic rates liability.

Whilst the overall rateable value in Wales has fallen, I recognise that values have risen in some locations and for some types of property. So, in response to the 2017 revaluation, the Welsh Government established a new £10 million transitional relief scheme to assist small businesses whose entitlement to small business rates relief was adversely affected. This relief scheme provides additional support to more than 7,000 ratepayers, and the scheme is fully funded by the Welsh Government. In contrast, transitional relief in England is being funded by ratepayers who saw reductions in their rateable values as a result of the revaluation. Just to be clear, the relief for those whose values have increased is being paid for by those whose bills should have fallen.

We’ve listened to what small businesses have been telling us, especially high-street retailers. Of course, some of us have been representing constituents who’ve been particularly affected by this, and we appreciate that some towns and communities were affected more by the revaluation. While there are many high streets across the country where rates have fallen, some retailers need additional support more generally—these points have been made this afternoon—because of, for example, competition from the growth of online and out-of-town shopping. That’s why we allocated an extra £10 million for additional support for high-street retailers, including shops, cafes and pubs in 2017-18. Again, this is fully funded by the Welsh Government. For many ratepayers, particularly those previously only eligible for partial small business rates relief, this additional relief has reduced their remaining liability to nil.

FSB Wales has welcomed the Welsh Government’s commitment to easing the pressure on high-street businesses affected by the revaluation and thus is a reflection again of the importance of engaging with FSB to learn and to debate these issues. I think it’s useful to highlight ways in which we are supporting our small and medium-sized businesses across Wales, particularly in terms of the high street and those opportunities. Launched in October 2012, the microbusiness loan provides scope, for example, to support businesses with loans of between £1,000 and £20,000. To date, the Wales microbusiness loan fund has supported 371 businesses, investing £9 million directly and attracting over £7.8 million of further private sector funds. The fund has created and safeguarded 1,747 jobs to the end of March 2017. Sometimes, statistics are useful, Nick Ramsay, in terms of just highlighting what has been achieved. Importantly in terms of regeneration, we’ve also funded 20 town-centre partnerships across Wales, and in addition to this, a £20 million town-centre loans fund.