Concerns about the detrimental effect that business rates are having on town centres in the county have been discussed by Pembrokeshire County Council's cabinet members this week, with the authority agreeing to a notice of motion put forward by one of its councillors to instigate a campaign in Wales to reform the way businesses are taxed.

The county council is to express 'serious concern' about the detrimental effect that business rates are having on town centres in Pembrokeshire, and is set to put pressure on HM Treasury to radically change the basis on which business rates are set, to take into account local needs.

The county council say they have been concerned about the impact of business rates on Pembrokeshire companies since proposals from the then Assembly Government to increase rates were first mooted in November 2008.

"One of the main problems encountered by businesses in Pembrokeshire is the level of business rates.

"In certain areas, due to the methodology used in their calculation, i.e. the notional rental income, the effect is worse," said Clr. Michael Williams in the notice of motion put forward to the cabinet, which members agreed to on Monday.

"Tenby in particular is unfairly penalised by the method used in calculating rates. It is interesting that one of the concerns raised in the Portas Report, which was published on Tuesday, December 13, is the level of business rates.

"Ms Portas states that 'High Streets are dying' and there are many reasons which are contributing towards their decline, but one of the main drivers is the excessive level of these rates.

"I would request cabinet to recognise this fact and instigate a campaign in Wales in conjunction with the Welsh Local Government Association to reform the way businesses are taxed," he added.

In light of the Welsh Government's proposed position and the regular five-year revaluation that was scheduled to come into effect on April 1, 2010, the Economy Overview and Scrutiny Committee examined this issue as part of its work programme in June 2009.

A presentation from the Valuation Office Agency raised a number of concerns and following a report to cabinet, a letter was sent from the leader of the county council to Dr. Brian Gibbons, the then Minister.

The letter clearly sets out the county council's position as being opposed to any proposals that detrimentally affect the financial stability of the county and provided evidence of the impact across a range of sectors, including retail, tourism and food.

In addition, officers worked with a number of Chamber of Trade and Pembrokeshire Tourism organisations in terms of lobbying the Welsh Government.

More recently, as part of the Welsh Government's Economic Renewal Programme, the Minister for Business, Enterprise, Technology and Science announced a review of business rate policy in November of last year, to be undertaken by an Independent Advisory Group.