It is hoped the changes will see businesses saving money
|
The assembly government has announced that Welsh businesses are to benefit from a reduced rise in their rates.
The announcement follows a similar decision by the UK government.
Instead of a planned 5% rise, business rates in Wales are now going up by 2% with the remaining 3% rise payable over the next two years.
The Federation of Small Businesses in Wales said the decision was "sensible". The change is expected to be implemented from July.
It should mean that up to around 100,000 businesses in Wales will benefit from an overall saving in the region of £24m this year.
Minister for Social Justice and Local Government, Dr Brian Gibbons said the changes would give businesses "breathing space" during the recession.
"We have been pressing the UK Government over the increase in business rates and the announcement yesterday means that we can now take action that is affordable and not funded at the expense of other vital services," he said.
Discussions
The assembly government said the changes should be in place by July.
Billing authorities will then write to all businesses in their area offering them the option to defer payments.
Until then businesses will need to keep paying their business rates in the normal way.
Discussions will now take place with the Treasury, Welsh Local Government Association and Welsh business on the detail of the arrangements.
The Federation of Small Businesses in Wales said the decision was a start in helping businesses in Wales through the recession.
A spokesman said: "The FSB in Wales questioned the Government repeatedly over the level of the proposed rise of nearly 5% for several months and we are pleased that they have listened to us and followed the lead of the UK Government in capping this rate rise."
|
One-Minute World News
E-mail this to a friend
Printable version
BBC News
Bookmark with:
What are these?