Business Minister Edwina Hart announced today that following advice from the Business Rates Review Task and Finish group, the next non-domestic rate revaluation date in Wales will be deferred from 2015 until 2017, in line with England and Scotland.
The Minister told Assembly Members the decision by the UK Government to defer the date in England was not welcomed by the Welsh Government, so funding would be considered to support some businesses in Wales particularly affected by the two-year deferral.
Mrs Hart said: “The Business Rates Review Task and Finish Group chaired by Professor Brian Morgan has considered the issues and has concluded that there are technical, economic and practical reasons for Wales to implement the same revaluation date as England. That is 2017. The same decision has recently been taken in Scotland.
“First, and of particular relevance to Professor Morgan’s conclusion are the significant economic issues and close inter-relationships of businesses on both sides of the border.
“Businesses have consistently told the Task and Finish Group they value certainty and Professor Morgan concluded that instituting a different revaluation date in Wales would not assist a stable business environment.”
Acknowledging concerns, the Minister said she was preparing to consider the potential for a fund to cover the period April 2015 to April 2017 to help some sections of the business community that may be particularly affected by the deferral. She said: “This would not be for all businesses affected. That would be unaffordable. I would however consider a targeted approach but this will require more in-depth analysis and costing. I have asked officials to consider this in more detail going forward.
The Minister has also asked the Task and Finish Group to examine the perceived issues and anomalies of the rateable values and the process. She will consider their findings and use their evidence to press the UK Government to improve the system prior to any future revaluation.
The Minister also said there appeared to have been some inaccurate coverage on the subject of business rates on charity shops and she wanted to allay some fears. She said: “In particular, unnecessary alarm seems to have been caused from a suggestion that a 50% rate relief limit would apply to all charity shops. Professor Morgan’s recommendations actually focussed upon larger charity shops.
“I would ask everyone to look at the principal recommendations of the Business Rates policy review which was for the Welsh Government to consult with charitable and retail sectors to discuss these issues.”
Regarding empty property rates for new developments, the Minister said officials are considering the costs and issues associated with extending the 18 months exemption period announced by the UK Government (for certain buildings) to two years, with three years in Assisted Areas.
Officials are also looking at the costs and implementation issues of introducing a scheme that operates in Northern Ireland and Scotland to bring empty properties into use by offering 50% relief.