Liberal Democrats call for a fair deal for Welsh small businesses ahead of budgets

The Welsh Liberal Democrats have called on the Welsh and UK governments to provide a fair deal for small businesses in Wales ahead of the budget announcements.

In a letter to the Cabinet Secretary for Finance Mark Drakeford, Welsh Lib Dem Leader Jane Dodds and Brecon, Radnor & Cwm Tawe MP David Chadwick called for an assurance that if there is any protection for business rates relief in England in the UK budget, that the Welsh Government will also maintain the relief scheme in Wales.

Liberal Democrat MPs also wrote to the Chancellor of the Exchequer Rachel Reeves calling for her to support small businesses across the UK and keep in place the current relief scheme in England.

UK Labour said it would reform the business rates system in its pre-election manifesto but has not announced specific changes since coming into Government in Westminster.

The UK Government will announce its autumn budget on Wednesday (October 30) whilst the Welsh Budget date set for 10 December.

Relief

In April the amount of discounts available fell in Wales from 75% to 40% for retail, leisure and hospitality businesses whilst similar businesses in England continue to get 75% relief.

The Welsh Government says only one in five pay the full bill.

The Lib Dems say the move has had a negative impact on small businesses up and down Wales.

The party has also called for a complete reform of business rates at both the UK and Welsh level, calling for the system to be replaced with a ‘Commercial Landowner Levy’ based on the value of the land where the business is located.

Growth

They argue this would make taxes fairer for small businesses, help to level the playing field with online retailers and supermarkets as well as boost growth in local economies.

Jane Dodds said: “Business rates are an outdated form of tax that needs urgent reform. But while we wait for that reform to take place we need to ensure our small businesses have all the support they need to thrive.

“That is why the Welsh Liberal Democrats are calling on the Labour Government to protect our pubs, restaurants and shops during this budget process.

“Small businesses in Wales account for a larger section of the economy in Wales than in Scotland and England, only highlighting why support for the sector should be at the forefront of this budget.”

Liberal Democrat MP for Brecon, Radnor & Cwm Tawe David Chadwick MP said: “The Welsh Labour Government’s decision to cut the business rates relief scheme earlier this year was a mistake that has already left small businesses up and down Wales struggling and even forced some to close entirely.

“Small businesses are the lifeblood of rural areas like mine. Not only do we have world-class hospitality, leisure and retail options in our small towns and villages, but these small businesses often provide important social and community spaces within rural areas.

“We need to be doing far more to support our small business owners who provide so much value to our communities. That starts with Labour ensuring they do not make any further cuts to the business rates relief scheme.”