Alun Cairns said, “The effect of the new rate will be partly mitigated in the short term by a transitional rate relief from the Welsh Government which will stagger the increase over a longer period of time. Although this is better than nothing, it falls far short of what is needed to protect our high streets. As the name implies, it exists to ease the transition to rates that are too high for many of our most valued businesses to survive. What is needed is a permanently enhanced small business rate relief, similar to that which will be used in England by the UK Government from April onwards, whereby rates will be abolished for all businesses with a rateable value below £12,000 and tapered up from there. The qualifying band for full relief in Wales is much lower.”
Jane Shankland commented, “The increases for many small businesses are clearly much larger than expected. Successful challenges will be based on the prosecution of appeals by suitably qualified business rate practitioners. Rental evidence will need to be properly analysed to establish the accuracy of the new assessments in order to conduct meaningful discussions with the Valuation Office Agency. We believe there is a case for businesses to take concerted action, as isolated and sporadic appeal activity will yield the least success.”
She added, “In December the Welsh Government announced an additional £10m to help some high street retailers across Wales who are facing substantial increases in their rates. The scheme is due to be in place by 1st April but details on how it will operate are currently being determined.”