Businesses can pay backdated bills over an eight-year period
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A council is calling on assembly ministers to give small businesses in its area a break from business rates. Vale of Glamorgan council said small firms face "slow but sure destruction" over the tax which councils collect and pass onto the assembly government. Economic development cabinet member Councillor Rhodri Traherne said firms should have a 12-month "holiday". The assembly government said local councils had the discretion to reduce bills if they thought it was necessary. From July, businesses in Wales have seen a reduced rise in their rates. 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, announced by the assembly government in April, was "sensible". But Mr Traherne, a Conservative councillor, said he has concerns about the effect the credit crunch was having on businesses in the vale, particularly on the high street. He said: "I am becoming increasingly concerned that councils are being blamed for businesses failing as a result of high business rates when the solution lies with the Welsh Assembly Government. "The fact is that business rates are a national tax and not a local tax. 'Failure' "It is our view that in the current recession there should be at least a 12 month business rates holiday, not just a deferment, for small businesses with a rateable value up to £6,500. "The Welsh Assembly Government has the powers to do this right now. "The failure to tackle this issue is resulting in the slow but sure destruction of many small businesses, and particularly small businesses on the high street." He added: "What is particularly misleading is that some assembly members are telling councils to do more to help businesses when the solution to this very serious matter lies with them." A spokeswoman for the assembly government said local authorities had the discretion to reduce rates if they thought businesses would suffer "hardship or financial penalty" by paying the full amount. "This hardship relief scheme can be used where businesses are in short term financial difficulty. The assembly government funds three quarters of this relief," she told. She said a £7m package for rate relief had been in place since last October, with two further measures added in November including an eight-year interest-free payment scheme.
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