6. Motion to annul the Non-Domestic Rating (Amendment of Definition of Domestic Property) (Wales) Order 2022

Part of the debate – in the Senedd at 3:57 pm on 6 July 2022.

Alert me about debates like this

Photo of Sam Rowlands Sam Rowlands Conservative 3:57, 6 July 2022

Can I thank my colleague Tom Giffard for submitting today's motion to annul, because, as outlined in opening today's motion, and the evidence I've heard as chairman of the tourism cross-party group, this Order would be detrimental to the tourism industry and will simply see many legitimate, hard-working Welsh businesses go bust?

To start with today, I'd like to outline how important the tourism industry is to Wales, as it's really clear to me that Welsh Government simply do not understand this. To be fair to the Minister here today, there should be the Minister for Economy here as well, who should be supporting these businesses here in Wales, rather than hiding away. But as we know, tens of millions of visitors spend their money, which contributes around £6 billion to our economy every single year and supports around 12 per cent of jobs here in Wales, boosting livelihoods and local communities, more importantly.

I'd like to focus on three key areas about why today's motion needs to be supported. Firstly, as outlined by Tom Giffard, these self-catering properties will now be required to be let for 182 days—that 160 per cent increase that Tom Giffard outlined—which is a stark difference to where they were in most recent times. As we know from the mass of evidence that's already been alluded to today, many will not be able to meet this demand. And what will happen if they don't? They're going to face around a £6,000 tax bill every year, possibly, that currently they do not have to face, and that's going to hit their bottom line and will certainly affect their ability to function. It's clear that this simply won't be possible for many, and Welsh Government actions will be putting people out of business and out of work.

The second point is that, as we know, we continue to see many people now tightening their belts. Now is not the time to make these businesses struggle. We need to support them, to see them thrive and survive. It's clear that this Order has sent absolute shockwaves through the industry, with many legitimate businesses not knowing what to do. We've heard today that their mental health and well-being has taken a huge hit.

The third point, and the most disappointing part, which Tom Giffard outlined already, is that the industry would have accepted an increase in occupancy. They're willing to work with Government to make this happen. It's ridiculous that these self-catering businesses will now have to meet these changes with no transition available whatsoever—a 160 per cent increase with no transition. So, what's going to happen to those who can't meet this? How are we going to encourage these businesses to come into Wales and thrive in our country?

In closing, Deputy Presiding Officer, it's clear that this Order is ill thought out, leaving more questions than there are answers. The Welsh Government is here and should be here to support businesses to allow them to thrive and not damage them. Today, we have an opportunity to rectify these detrimental changes and work with the tourism industry to see, yes, an increase in occupancy rates, but one that is fair, one that works for them, and won't see people lose their jobs and their livelihoods. So, Members from across the Chamber, there are thriving tourism businesses in many of your regions and constituencies. They are there, they support your communities and they offer and contribute so much to the places where we work and live. Today is an opportunity to think about those communities and those businesses, support them, and vote to annul this damaging Order. Thank you very much.