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BBC Wales's Business Correspondent Miles Fletcher
"More cash needs to be raised here in Wales."
 real 28k

Thursday, 16 December, 1999, 06:17 GMT
CBI warns of possible job losses

The National Assembly Chamber The Assembly now controls business taxation


The Confederation of British Industry has warned that business rate increases of up to 20% could lead to closures and job losses in Wales.

It has described the new rates regime ordered by the National Assembly as "extremely damaging".

Control of local authority taxation is one of the few real financial powers the Assembly has.

The constraints on the amount of money received through the block grant from London means more cash needs to be raised in Wales.

While small businesses, with premises - worth less than 25,000 - will see their rates bills fall, the rest of the business community is about to see a major increase in its overheads.

According to the CBI, heavy industries such as the oil and chemicals sectors will see their rates rise by 7%.

Meanwhile shops in places like Merthyr Tydfil will see a rise of 16%.

The CBI says that is a big liability at a time when many firms are struggling to stay competitive.

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See also:
07 Dec 99 |  Wales
Rural councils hit by council tax squeeze
07 Dec 99 |  Wales
Debt may force higher taxes

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