I'm grateful to have the opportunity to take part in this debate today. As a former county councillor, but not reaching the dizzy heights of council leader like my two esteemed colleagues either side of me, I am acutely aware of the importance of that revenue business rates raise for local authorities, but also the inadequacies of the current funding formula and the raw deal that many councils receive when it comes to budget settlements and distribution of funds. It is for this reason that I am grateful to have the opportunity to contribute.

It came as no real shock, really, that businesses in Wales pay the highest business rates in the whole of Great Britain, with Welsh businesses paying up to 4.5 per cent more than other businesses across GB. The fact that Wales is the only nation in Great Britain to levy a one-size-fits-all standard rate, whatever the business size or turnover, seems both counterintuitive and dismissive of the breadth of businesses here in Wales, especially SMEs. As my colleague the Member for Monmouth so eloquently put in opening the debate, businesses in Wales are fundamental to our economic prosperity. This stands just as true for those independent small traders as it does for the bigger multinationals, both of whom play an important role on our high streets. So, while the sector has faced uncertainty over the last few years, this Welsh Government surely has a duty to do what it can, with the levers it has, to mitigate some of these pressures and help businesses to navigate a route back to growth and prosperity.

Many of us in this Chamber today would probably proudly boast of a high street in their constituency full of independent traders, which acts as an exemplar as to how we would like to see high streets across Wales look. For me, it is Narberth, and that's not just because my office is on the high street, but I'm sure it's a contributing factor—a high street full of independent traders, high-quality eateries and family businesses drawing punters into the town. Members have looked to other towns across Wales and the positive examples that they have in their constituencies, but, for all these success stories, we also have areas where businesses have been priced out of the town centre. The historic towns of Pembroke Dock in Pembrokeshire or Whitland in Carmarthenshire are sadly examples where, over the last generation, businesses have closed and shops remain empty. One of the contributing factors to this is the inflexible business rates regime that they have to operate under. Towns such as Narberth greatly benefited from previous rural rate relief schemes, which did much to establish the town as a shopping destination for visitors and locals. I understand that such schemes remain at the discretion of individual local authorities, but I would be keen, Minister, to understand whether the Welsh Government is encouraging their local government colleagues to make use of these levers that remain at their disposal.

Long before I was elected to this place, my colleagues on this side of the Chamber have called for businesses under a rateable value of £15,000 to be exempt from business rates altogether, and for businesses that are valued under £18,000 to pay a rate that tapers up in value to that full amount. This would enable more money to be reinvested in small businesses, especially in their earlier years of operation. If our policy is not palatable to the Welsh Government, could I urge the Minister to give consideration to a suggestion made by the Federation of Small Businesses regarding when start-up businesses should begin to pay business rates? Rather than landing a new business with a rates bill from day one, would it be worth exploring the option of a rate holiday for, say, the first 12, 18 or 24 months of operation? This would see more businesses start, increase the chances of long-term survival and increase the numbers of premises being occupied and job opportunities created.

Minister, it's obvious that no-one has all the answers to this problem. There are a range of solutions, however, that can go some way to address some of the challenges that lie ahead. I urge the Chamber to support our motion today and show businesses in Wales that the Welsh Government is, in fact, on their side. Diolch, Llywydd.