These issues don’t just impact on businesses directly, such as by increasing overheads, but they have indirect impacts as well, and we know that the inflation and cost-of-living crisis will reduce discretionary spending powers, meaning businesses face another hit to their income streams. Many have tried to absorb price pressures over the last few months already, but clearly this is not sustainable in the longer term. We know that businesses and business owners are really concerned.

I welcome the various measures that have been announced by both the UK and Welsh Governments in relation to supporting businesses. Just a few examples of this include the UK Government’s furlough scheme, which provided significant help for businesses during the pandemic, as well as the energy bill relief scheme that was recently announced. The Welsh Government’s amendment, as noted on the agenda, also lists the support that it provides to businesses across Wales, which of course, we on this side of the Chamber really do welcome.

But more help is needed. There’s not just a cost-of-living crisis at the moment, but a cost-of-doing-business crisis as well, and this is why the Welsh Conservative group will not be supporting the Government amendment. Because if the cost of doing business was reduced, then they wouldn’t need such substantial support to relieve the burden of business rates. And unfortunately, the Government amendment does not capture the need to reconsider business taxation to ensure that it’s not a regressive barrier to aspiration and business growth.

As it currently stands, businesses worry that making improvements to their premises—including efforts to make them more sustainable, for instance—will cause the rateable value of their property to rise, meaning they would be forced to pay more just because they wanted to expand their business or improve their prospects, or even, in the case of energy improvements, to reduce their overheads and help the environment. In fact, the way that business rates work means that firms are forced to pay tax before they’ve even had any income, let alone made any profit. Add in the fact that rates in Wales are relatively high in comparison with other countries—Wales currently has the highest business rates in Great Britain—and you can see why the sector is calling for a re-think as to how we tax prosperity.

Presiding Officer, I’m not going to pretend that I have all the answers, or indeed that this debate will solve the issue; it’s a complex situation and it’s going to take time to work with business to strike the right balance between supporting public services via taxation and economic growth.

I note the suggestion of a land value tax, as argued for in the Plaid Cymru amendment. However, unfortunately, we on this side will not be able to support that amendment either as things stand. Whilst I recognise that such a reform does have some benefits compared to the current system, we really have to be careful about the impacts that such a wide-reaching reform as proposed may have, as I’m sure Members will all agree. For example, there are many small businesses that are currently in the centre of towns and cities where land values are expensive. Could such reform drive them out of our high streets, where their presence is much needed? We have to ask ourselves what do we really want: vibrant town centres, or something else? Would a land value tax encourage people to set up more online businesses rather than having a physical presence, to avoid paying this tax? How, then, would we ensure that online businesses are fairly taxed, and are treated equally to those that have a physical premises? But I do look forward to hearing from the Plaid benches on how such a tax could work in practice, and ensure that the pot of money currently raised via non-domestic rates would remain the same whilst being fairer on businesses.

However, there are things that could be introduced over the coming months to help businesses survive whilst wider reforms are considered. For example, the Federation of Small Businesses Cymru have called for the reintroduction of a 100 per cent business rates holiday for retail, leisure and hospitality businesses whilst this uncertain economic climate continues. At the very least, there could be a consideration of extending the current 50 per cent relief scheme beyond its current lifetime during these difficult times, as businesses currently are fearful of the cliff edge they face. Or the Government could maintain the freeze on the multiplier, so that businesses can at least plan with some sort of certainty. I would also argue that we could look at splitting the multiplier, much like what we see in other parts of the UK, so that small businesses are not treated in the same way as large businesses, and that would encourage growth. FSB Cymru have also raised some very valid points, such as minimising the cost of appeals for businesses and ensuring that all businesses are aware of the various support schemes that already exist.

I know that the Minister is going to say that these things cost money, and I’m aware that there isn’t an unlimited pot of money for the Welsh Government to use, but it still has the levers it needs to provide help to businesses through this period, like it previously has done. We can use existing resources better to provide support that doesn’t just reduce the business rate burden, but helps businesses to grow, reducing the reliance on additional financial support from Government to pay the rates.

Presiding Officer, I look forward to hearing the contributions of Members from across the Chamber this afternoon, and I hope that we can use this debate to constructively discuss how best we can support Welsh businesses, not just through these difficult times, but beyond, so we can help build a stronger, more prosperous economy for all. In summary, Presiding Officer, I ask Members to support the original motion and to oppose amendments 1 and 2. Thank you.