Tory call on business rate relief

Conservatives say Wales should follow England's lead on business rate relief

Small businesses in Wales should receive help paying rates in line with England, according to Conservatives.

Tories say firms in England will benefit from a change in the rules, and want the same in Wales.

They said 40,000 Welsh businesses would be hard hit by higher rates next year during tough economic times.

But the Welsh Assembly Government said almost two-thirds of business premises received help with their rates and the system in England was different.

Welsh Conservatives said a re-valuation of rates will mean increases for 40,000 firms next year.

The party wants the assembly government to follow the UK Government in raising the threshold at which businesses qualify for rate relief.

In a letter to Welsh Conservative leader Nick Bourne, Local Government Minister Brian Gibbons said the assembly government was very aware of the effect of the economic downturn on small businesses and was considering measures.

But Mr Bourne said: "Wales should be following England's lead on this, and raising the rateable value threshold upwards.

"This would help some of the 40,000 businesses across the country which will see business rates rise next year."

He wanted the assembly government "to raise the rateable threshold at least in line with England".

The assembly government said it would be changing the threshold, but the systems in Wales and England were completely different.

"The Welsh assembly government is keen to look at ways to help businesses come through the recession," said a spokesman.

"It should also be noted... that almost two-thirds of business premises in Wales are currently receiving a reduction of at least 25% on their rates."

He said local councils "can grant discretionary hardship relief to business if they believe it is in the local interest and 75% of this funding is met by the government".