Liberal Democrats Call for a Fair Deal for Welsh Small Businesses

The Welsh Liberal Democrats have called on both the Welsh and UK Labour governments to provide a fair deal for Welsh Small Businesses ahead of the UK and Welsh budgets.

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

Separately, Liberal Democrat MPs including David Chadwick 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.

The Welsh Liberal Democrats have highlighted that earlier this year, the Welsh Government decided to cut the business rates relief scheme from 75% to 40%, a move they say was out-of-step with England and has already had a negative impact on small businesses up and down Wales.

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Democrats have also called for a complete reform of business rates at both the UK and Welsh level, calling for the outdated system to be replaced with a ‘Commercial Landowner Levy’ which would be based on the value of the land where the business is located.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

Commenting Welsh Liberal Democrat Leader Jane Dodds MS 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“Business rates are an outdated form of tax that needs urgent reform.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 added:

“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.”

ENDS