Business rates relief scheme not enough – retail chief

A WELSH Government scheme to provide more support for shops and pubs to pay their business rates is not enough, according to a retail body.

An extra £5m is being provided to extend the high street rates relief scheme in 2018-19 as a way to help businesses to pay business rates for their premises.

The scheme, which is unique to Wales, was set up in 2017-18 to provide eligible businesses with a reduction of up to £750 from their non-domestic rates bills.

The Welsh Government says the extension of the scheme will provide additional support to 13,000 small and medium-sized high street businesses including shops, restaurants, cafes, pubs and wine bars.

Finance Secretary Mark Drakeford said: “This additional support, which extends the high street rates relief scheme into 2018-19, together with our decision to put the £100m small businesses rates relief scheme on a permanent footing from April, ensures ratepayers across Wales are receiving support to pay their bills.

“Targeting support to high street retailers will help those businesses which are affected by the current economic conditions and competition from online and out-of-town providers.”

In response to the Welsh Government’s announcement, the Welsh Retail Consortium (WRC) said it welcomed the news, but claimed the scheme is not enough and there needs to be extensive reform of the system.

Sara Jones, head of the WRC, said: “While the Welsh Retail Consortium welcomes the announcement, retailers are still crying out for more fundamental reform of the outdated business rates system which penalises investment in bricks and mortar.

“The burden of an unreformed rates system places real pressure on the future of our industry.”