Businesses in Swansea Bay say the Government’s forthcoming business rate revaluation is not enough to help them according to the latest survey from the region’s leading business club.
Almost 67 per cent of those that took part in a survey by Swansea Bay Business Club said that next year’s changes in business rates will not be enough to help local businesses and our high street, with 50 per cent saying the proposed changes will not have any positive impact on their business at all.
With 17 per cent of respondents currently paying more in business rates than they do in rent, the survey revealed that half of those questioned had also had cause to challenge the amount they pay. 17 per cent also stated that the rates they currently pay are fair compared with other taxes such as corporate or income tax.
Despite this, looking towards the proposed changes in April 2017, only 17 per cent of those surveyed said they were worried about the forthcoming changes.
The recent changes to business rates means that thousands of businesses will face dramatic changes to the amount they pay from April 2017. The new system means that rates will now be much higher in areas like central London, where property prices have risen in recent years. In other locations, such as Swansea, the rateable value of premises has fallen by 14% since 2010. However, the changes have a cap on how much rates can fall or rise over the next few years, so for many companies rates won’t change as quickly as they would have been hoping for.
Bruce Roberts, Chair of Swansea Bay Business Club’s Policy Group, which aims to promote the club’s members’ position on public policy issues, said: “Our survey has revealed that business owners in Swansea Bay strongly feel that these changes don’t appear to be going far enough to help them survive and flourish in the here and now.”
Last week, South West Wales AM Suzy Davies accused Government ministers of ‘betraying’ firms over business rate relief. Plaid Cymru’s Shadow Cabinet Secretary for the Economy, Adam Price, also warned last week that the high street shops are empty whilst big companies are thriving.
President of Swansea Bay Business Club, Hayley Davies, added: “Although some business owners in Swansea have publicly backed the changes, our survey suggests that the majority of business owners feel the changes need to be implemented immediately rather than over the planned transitional period. Quite simply many of our members feel the changes just aren’t enough to have a significant impact on their businesses.”