County rallies against rate rises (From Western Telegraph)

Pembrokeshire rallies against rate rises

3:30pm Tuesday 3rd November 2009 in News

Councils, chambers of trade and politicians in Pembrokeshire are sounding the battle cry against the proposed rating hike that will hit thousands of local businesses.

As the Western Telegraph reported last week, new business rateable value figures just published show 'draconian' and 'astronomical' increases, with one trader in Narberth contemplating the prospect of a 440 per cent rise.

Overall, commercial properties in Pembrokeshire - ranging from petrol stations to post offices - are looking at an average increase of just over 30 per cent. The holiday trade is worst-hit, with hotels, guest houses, caravan parks and camp sites faced with a increase of over 50 per cent, with some assessments more than doubling.

Pembrokeshire County Council's cabinet agreed on Monday to express its concern to the Welsh Assembly Government on the scale of rateable value increases. The authority is now calling for adjustments to the threshold for Small Business Rate Relief and the multiplier - or rate poundage figure - which will determine the final amount paid.

The authority's leader, Councillor John Davies, in pledging support for traders, pointed out that the council was only the collector of the tax, and only received part of it back through rate support grants.

"We are as one and we are doing everything we can, " he said. "We value and treasure the businesses we have in Pembrokeshire."

Local MP Nick Ainger is meeting Welsh local government minister Dr Brian Gibbons tomorrow (Thursday) to discuss ways of keeping rate increases to a minimum.

"I have already suggested three options to him - a transitional relief scheme like England's, which restricts rises to five per cent; a cut in the multiplier or a grant scheme directed at small businesses facing big rises," said Mr Ainger.

The accuracy of the new valuations is also an issue, he added, and the Valuation Office Agency - which makes the rateable value assessments - has already agreed to meet Pembrokeshire Tourism and local chambers of trade to ensure the new valuations are correct.

"If these new valuations lead to equivalent rises in business rates next year, many businesses will be hit so hard they may face closure or have to lay off staff," said Mr Ainger. "This possibility of big rate rises could not have come at a worse time for traders. Action is now needed to protect local businesses and jobs".

In Narberth, particularly hard-hit because the town benefited from Rural Rate Relief before March 2007, the Chamber of Trade is hoping to have a re-assessment for the entire town, said secretary Gordon Barry. "This will not be an easy undertaking, but the true cost otherwise could be devastating."

The huge concerns have prompted Carmarthen West and South Pembrokeshire AM Angela Burns to hold an open meeting in Narberth next Monday, November 9th, to hear from local businesses. This will take place at The Courthouse, Market Square at 6pm.

Mrs Burns has pledged to continue pressure on the Welsh Assembly Government, but does not feel that reduction of the multiplier is the answer.

"This is especially true in the case of Narberth, where the Valuation Office Agency has increased rateable values by an enormous amount and has not measured the town against other market towns like Llandeilo and Llandovery, but places like Cowbridge in the Cardiff conurbation."