Business rate relief cut is “death sentence for many businesses in Wales”, say Welsh Conservatives

The Welsh Conservatives have warned that plans to cut business rates relief for retail and hospitality is “risking more closures.”

As part of its 2024-25 draft budget the Welsh Government is proposing a cut from 75 per cent to 40 per cent on the Non Domestic Rates.

The relief will be capped at £110,000 per business across Wales.

However there have been concerns that reducing the rate relief during the cost-of-living crisis and high levels of inflation will have impact on an already struggling retail and hospitality sector.

The Welsh Conservatives have warned that cutting the rate relief will be a “death sentence for many businesses in Wales.”

Andrew RT Davies MS, Leader of the Welsh Conservatives said: “It’s understandable that businesses across Wales are concerned about the draft budget proposals on business rates relief.

“Local businesses are a huge part of their communities, paying wages and providing services, and the Welsh Government is risking more closures if the rates relief cut goes ahead.

“The Labour Welsh Government should keep Wales competitive and match England’s business rates relief.”

Tom Giffard MS, Shadow Minister for Tourism, said: “The cut to rates relief will sadly be a death sentence for many businesses in Wales.

“Already we have seen much-loved restaurants closing their doors this new year, and if the rates relief cut goes ahead, we will likely see more and more closing down.

“It’s not too late for the Labour Government to throw hospitality a lifeline and cancel their business rate relief cut.”

Yesterday Wrexham.com reported that First Minister Mark Drakeford was challenged by Plaid Cymru leader Rhun ap Iorwerth MS, who said hospitality leaders had reached out with their fears about the future of the sector.

However Mr Drakeford said the Welsh Government would not reconsider the cut unless additional finances could be found in an already tight budget.

He said: “It has always been a temporary scheme, and there will come a point where it will come to an end. ‌​‌‌​​​‌‍‌​‌​‌‌‌​‍‌​​​‌​‌‌‍‌​​​‌‌​‌‍‌​​‌‌‌‌​‍‌​​‌‌‌​​‍‌​​‌​‌​​‍‌​‌‌‌​‌‌‍‌​​‌‌​‌​‍‌​​‌‌‌​​‍‌‌​​‌‌​‌‍‌‌​​‌‌​​

“We are providing a pathway out of the subsidy for the sector, and I think we have made the right decision.

“It’s right for me to point out, Llywydd, as well that, at the same time, we are providing an additional £20 million in a new capital scheme that will allow those businesses to carry out improvements to premises that will permanently reduce their reliance on very expensive energy, for example. ‌​‌‌​​​‌‍‌​‌​‌‌‌​‍‌​​​‌​‌‌‍‌​​​‌‌​‌‍‌​​‌‌‌‌​‍‌​​‌‌‌​​‍‌​​‌​‌​​‍‌​‌‌‌​‌‌‍‌​​‌‌​‌​‍‌​​‌‌‌​​‍‌‌​​‌‌​‌‍‌‌​​‌‌​​

“So, that’s not a one-off scheme or a temporary scheme; that is a scheme that will mean that, from then onwards, those businesses will be able to save money and to go on trading.”