Revaluation is not a tax raising measure but simply redistributes the rates payable between properties according to their relative values at the time of the revaluation. Some rate bills will rise and some will fall.
Over 60% of businesses will benefit from a reduction in the their rate bills as a result of the revaluation and the decision the Assembly Government has already announced to reduce the multiplier that is used in calculating business rate bills from 0.489 to 0.409.
Carl Sargeant said
“The Assembly Government is committed to supporting businesses through the current economic climate and it is important that help those that face an increase in their rate bills as a result of the revaluation exercise.
“However, we also know that there is little appetite for the sort of transitional scheme that operates in England as this would take money away from those businesses who are suffering most during the recession in order to cap increases for businesses that have been more successful.
“I have listened to the concerns of the Federation of Small Businesses and the Wales Tourism Alliance. They have told me that they would welcome an increase in the upper thresholds for small business rate relief.
“I propose to introduce a Welsh business rate relief package that will increase the upper limits for each category of small business rate relief by at least 20%. The upper rateable value limit for each category of relief will be as follows:
- upper limit for 50% general relief increased from a rateable value of £2,000 to £2,400
- upper limit for 25% general relief increased from a rateable value of £6,500 to £7,800
- upper limit for 25% retail relief increased from a rateable value of £9,000 to £11,000.
“The measures I have announced today mean that from next April over half of all business premises in Wales could qualify for this relief. Also, in line with the Chancellor’s pre-budget report, the rateable value threshold at which empty properties in Wales are excluded from liability for non-domestic rates will be raises from £15,000 to £18,000 for the next financial year.
"This package of additional rate relief demonstrates the Assembly Government’s commitment to providing real assistance to smaller businesses to help them in these tough times for the economy.”
Janet Jones, Chair of the FSB in Wales said:
“The above inflation increase in the thresholds of small business Rates Relief will be an early Christmas present for many businesses in Wales.
“Non Domestic Rates pose a higher burden for small businesses and the FSB welcomes the increase in the thresholds to ensure more businesses receive a rate reduction as we called upon the Welsh Government to minimise the effects of the revaluation on business. Coupled with the decrease in the multiplier, we hope that this will go a long way to help many of our businesses”
22 December 2009