Business Rates

Part of 1. Questions to the Cabinet Secretary for Finance – in the Senedd at 2:05 pm on 14 November 2018.

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Photo of Mark Drakeford Mark Drakeford Labour 2:05, 14 November 2018

Well, Llywydd, the Member makes a very important point and he gets right to the heart of what is, I think, one of the weaknesses of our current scheme, 75 per cent of Welsh businesses benefit from small business rate relief here in Wales, 50 per cent of them pay no small business rates at all—they get it whether that sum of money is necessary to their business or not. There is no test in the system that we have, or indeed in any part of the United Kingdom, as to whether or not that money is doing real good in that business. The point that David Rees is making is whether or not we ought to consider, in the way we distribute the money, whether we should put more money in the hands of those businesses for whom this relief is genuinely making a difference to their survival or not.

There's been work in Northern Ireland and in Scotland on this. I think it's a sensible idea. It's difficult to bring off because of the scheme that we have inherited, but it's a scheme that indiscriminately provides help to those who need it and those who don't. You could say it's not the very best use of public money when we know that there are some parts of the high street in some communities where the help that we could offer through the scheme, if it was more targeted on those who really needed it, would go further to sustain businesses in some very disadvantaged parts of Wales.