Sir,
I would appreciate you allowing me to comment on the article in your paper dated April 2, regarding Paul Davies AM and the representation he made to First Minister Carwyn Jones in the Senedd over the 2010 business rate valuations and the impact it will have on tourism operators in Pembrokeshire, especially those in the self-catering sector. The business rate is based on an assumption of potential earnings from that business, not on actual earnings, and that assumption has been calculated by a bureaucrat who perhaps has little practical business experience.
Reports suggest that the intended remedy is to allow from October 100 per cent temporary relief for businesses with a rateable value of £6,000. In practice this would mean that a business with a rateable value of £6,000 would pay £2,454, not taking into account any temporary relief scheme, whilst a business with a rateable value of £5,999 would pay nothing - surely not a level playing field for business.
It would also not help the second home ownership situation in Pembrokeshire as a no resident property owner would only need to state the property is available for over 20 weeks as opposed to let for over 20 weeks to apply to become business rated and therefore pay nothing.
We also have the situation where a business supplying accommodation for private tenants through shorthold tenancies is able to opt out of business rates, no matter how extensive the business, with the sole reason being that if the state through housing benefit pays the rent of the tenant it will be liable for community charge element of rent, but if the business is business rated, the business would have to pay.
How can a system be fair for businesses in general when there are so many anomalies. If there is a need to tax business, it should be on actual profit, not in advance on assumed income or profit.
With many tourism businesses, not only in the self-catering sector, reporting advance bookings being at the lowest level ever, I would through your paper urge Mr. Davies AM and other elected politicians to at least make representation to the Minister to allow payment by any business that disputes the rating to be delayed until the outcome of any appeal hearings.
Malcolm Calver,