Welsh Conservatives accuse Welsh Labour of Deliberately Misleading the Public

Rural firms bearing the brunt of Labour’s business rate betrayal

The Welsh Conservatives have accused Welsh Labour of deliberately misleading the public over its Business Rates pledge. Instead of the tax cut they were promised, many small Welsh firms now face a dramatic hike in their bills following rate revaluations.

The effects are being most keenly felt in rural communities across the country.

Economy Spokesman, Russell George, said that the Welsh Government’s claims to have delivered a tax cut to small Welsh firms were “deliberately misleading”.

In fact, rate relief for small businesses in 2017/18 will remain exactly the same as in 2016/17 – breaking a key pledge in Labour’s recent manifesto. [LINK]

The claims come as many Welsh firms face substantial hikes in their rateable values. Proposed new rateable values for business premises have been published in recent weeks, with some firms facing a rise of more than 100%.

In Cowbridge, for example, some firms face hikes of as much as 136% [see attached document]. The revaluations have similar impact in towns across Wales.

In Monmouth, for example, some company owners are facing hikes of 130%, whilst businesses in Brecon met with Welsh Conservative Leader – Andrew RT Davies – on Thursday to raise similar concerns.

Economy spokesman, Russell George said that the Welsh Government’s failure to implement a promised cut to Business Rates meant that many firms now face a substantial rise in their bills with no support.

He George said:

“The power to set business rates is one of the most significant tools that the Welsh Government has at its disposal to support small firms.

“Business rates remain a huge financial burden for SMEs, and the recent revaluations have come as a sledgehammer blow to many rural firms – some of whom now face crippling bills.

“A tax cut for these firms would have mitigated against the impact of revaluations, and provided a much needed shot in the arm to the Welsh economy.

“Instead, the Labour party is cynically and deliberately seeking to mislead the business community.

“This is not a tax cut. The thresholds for rate relief have not changed, and Labour’s manifesto pledge has been broken within months of the election.”