Responding to today’s announcement on business rates, the Welsh Labour Government has been accused of breaking its pre-election pledge to “offer a tax cut for all small businesses”.
The statement once again postpones a final decision on a permanent scheme for rate relief until 2018, and once again locks in the same thresholds at which rates are paid by small firms:
100% relief to businesses with a rateable value of up to £6,000; tapered relief from 100% to zero for those firms with a rateable value of between £6,001 and £12,000.
Shadow Economy Secretary, Russell George, said:
“Labour went to the Welsh electorate pledging to cut taxes for small businesses, and just weeks later that promise has already been broken.
“This announcement provides no long term certainty for those firms, and once again postpones the introduction of a permanent scheme which could offer meaningful support to the 99% of businesses that make up the Welsh economy.
“There are no changes to the thresholds for rate relief, despite a clear manifesto pledge.
“Furthermore, the Welsh Government has ducked the opportunity to look at a small business multiplier, which could have levelled the playing field with bigger firms.
“This is a missed opportunity, and small Welsh firms will be wondering what this statement actually adds beyond uncertainty.”
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