LOCAL Reform MS Claire Archibald has called on the Welsh Government to review the current Small Business Rates Relief threshold.

Under the current system, businesses in England can receive 100 per cent Small Business Rates Relief on properties with a rateable value of up to £12,000. In Wales, however, the equivalent threshold remains at £6,000, a disparity that the member for Ceredigion Penfro believes is holding back the growth of small and rural enterprises.

After meeting with local businesses exhibiting at the Royal Welsh Show, she took on board concerns raised by business owners who say the current threshold limits their ability to invest and expand.

Commenting on the issue, Claire Archibald MS said:

“The difference between the Small Business Rates Relief thresholds in Wales and England places many Welsh businesses at a clear disadvantage. For growing businesses, particularly in rural areas such as Pembrokeshire and Ceredigion, losing financial support at a crucial stage of development can have a significant impact on their ability to invest, expand and create new jobs.

“I have spoken to a number of local businesses at the Royal Welsh Show, and these are exactly the kinds of enterprises we should be supporting. They are innovative, ambitious and make a valuable contribution to our economy. We need to ensure that our business rates system encourages growth rather than creating additional barriers.”

She made it clear that raising the threshold for 100% relief would allow businesses to retain more of their earnings during key stages of development enabling them to recruit additional staff, increase production, develop new products and strengthen local supply chains.

“As policymakers look at ways to strengthen local economies and create opportunities across Wales, there is a strong case for reviewing the current threshold. Small businesses are the backbone of our communities.”