1. What discussions has the Minister had with local authorities regarding how the collection of business rates and the discretionary awarding of business rate relief can be used to improve Welsh high streets? OAQ53915

We have worked closely with local authorities to improve the administration of non-domestic rates and rate relief and will continue to do so. The Minister for local government and I discussed this with local government leaders at the finance sub-group meeting this morning. 

Thank you for your response, Minister. There are some imaginative ways that rate relief is being used to make town centres better places to be. For example, in Flintshire, they've offered a rate reduction to businesses that give public access to their toilets. Another way that rate relief and the business rate system could be used is to incentivise the growth of job-creating businesses over those that don't, for instance by giving start-up businesses a rates-free period, or offering a discount to businesses in return for job creation. Do you agree with me that the business rates system should be reformed to strategically target the system to actively encourage new business investment and job creation? 

Thank you for raising the important issue of non-domestic rates this afternoon. In total, over £210 million of relief is being provided in 2019-20 to support businesses across Wales with their bills, and these reliefs are available to all eligible ratepayers, including those on the high street who meet the criteria. But, as you say, we have introduced an extra £23.6 million of support to enhance our high-street rate relief scheme, and that's been extended now for a further year into 2019-20. But I think one of the most important things that we have introduced is that additional £2.4 million to local authorities to offer that discretionary rate relief to businesses and other ratepayers. But I do think it's important that it does remain discretionary in the wider sense because local authorities are best placed to understand where the local pressures are and where the local opportunities to make a difference are. You've given an example already about the way in which Flintshire is using its rates to try and open up access to public toilets within the town centre. So, the whole point of it being discretionary is for local authorities to be agile and respond to local need. 

Minister, there's a difference between looking at something as a discretionary rate relief and something that, actually, should be hidden from public view. Within my own region, there seems to be some confusion about how this is awarded, with, I understand, two of the councils in my region proactively seeking out businesses that could benefit from this, advising them and then administering the mitigating monies quite straightforwardly. And, yet, another of them don't seem to be telling very many people about it—there's definitely a culture of businesses having to proactively themselves seek out whether this thing is available to them or not, and, as a result, in one particular council, only a third of those eligible for this relief are getting it. 

So, I wonder if you have any idea why Bridgend doesn't seem to be following what I hear is good practice in Swansea, Neath Port Talbot, the Vale of Glamorgan and Cardiff, to ensure that people in Bridgend get the benefits in the way you intended them to get. And if you don't have any idea why they're doing that, can you explain why not? Perhaps you could be discussing that in the sub-group meetings you're having. 

So, as I say, we had a meeting of the finance sub-group this morning, where I was able to thank local authorities for the work that they have done in terms of introducing the new schemes. As you say, you've given some examples where you believe that good work is happening. Swansea is one of those. I'll certainly take up the issue with the leader of Bridgend council to understand what the situation is there and to see if it does reflect the perception that there is not the promotion of the discretionary rate. 

Minister, with declining footfall to our Welsh shopping destinations continuing to cause a major headache for retailers, and with shop vacancy levels among the highest in the UK, we do need urgent action. I see you follow the Scottish Government on quite a bit of stuff, and campaigners in my area have approached me with the example of the Scottish Government, which has introduced a below-inflation increase in business rates. Does the Welsh Government acknowledge the tough times the retail industry is facing and what support will you be providing?

Welsh Government will always take decisions in terms of what’s best for people in Wales and for businesses in Wales, but we have a generous approach to rates relief in Wales. Our average rateable value is different to that in England and it will be different to that in Scotland. So, it’s important that we take the decisions in terms of rate relief that are right for Wales and that do reflect our Welsh context.

Our enhanced scheme this year goes significantly further than in previous years. We provide support to over 15,000 retail businesses across the country. It’s fully funded by the Welsh Government and provides support of up to £2,500 towards non-domestic rate bills for retail properties with a rateable value of up to £50,000. The scheme reduces rates bills to zero for retail properties with a retail value of up to £9,100. So, it certainly is a generous offer, but we have to remember that non-domestic rates, alongside council tax, play a really important part in allowing our local authorities to continue providing the kind of services on which we all rely.

Minister, the Welsh Labour Government has been proactive on the issue of high-street rate relief and it’s clear that a busy and productive high street is of fundamental importance to my constituency, including the towns of Blackwood, Risca, Newbridge, Crosskeys and many others across Islwyn.

Indeed, the First Minister, whilst Cabinet Secretary for finance, in December last year issued a statement announcing that the Welsh Government was extending the high-street rate relief scheme for a further year and extending the relief available through the scheme to businesses, with a further £2.4 million to be allocated to local authorities to provide additional discretionary rate relief for local businesses and other ratepayers. So, isn’t this yet further evidence that the Welsh Labour Government is on the side of local businesses?

It absolutely is, and I thank Rhianon Passmore for that contribution. Of course, our work on non-domestic rates is just part of a package of ways in which we support our regeneration of town centres and support our high streets in Wales.

Of course, we have our targeted regeneration investment programme, in which we’re investing capital funding of up to £100 million over a three-year period. That goes alongside the work that we’re doing in terms of promoting business improvement districts. So, in October, in my previous portfolio, I announced a further £262,000 funding for the development of an additional 10 business improvement districts, to add to the 13 that are already making a difference in town centres across Wales.