Sir,

I wish to respond to the letter from Angela Walker in last week's Tenby Observer castigating Pembrokeshire County Council for increasing the business rates in Narberth 'by 200 per cent'.

Firstly, I would like to point out that the county council does not set the business rates.

We do collect them on behalf of the Welsh Assembly Government, but the statutory power to set the rateable value lies with the Valuation Office Agency and the Assembly prescribes the rate poundage.

In other words, we merely provide a collection service on behalf of central government. It is handed over to the Assembly to redistribute across Wales and therefore we only partly benefit from the tax.

We would urge any ratepayer dissatisfied with their proposed rateable value for next year to contact the Agency direct.

Secondly, as a county council, we are concerned that the increased rates may affect the financial viability of some small businesses.

At Monday's meeting of the authority's cabinet, it was agreed that we will make representations to the Welsh Government on the matter.

Clr. John Davies,

Leader,

Pembrokeshire County Council