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THE HERALD FRIDAY JANUARY 27 2017


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Business rates prompt backlash


UPWARDS of 40 small business Dan Muller


owners from across Pembrokeshire gathered at The Pavilion in Haverfordwest last Friday (Jan 20), in what proved to be a unified backlash against rising business rates. The open meeting, organised by


Pembrokeshire Tourism Ltd after many local businesses insisted they had been ‘unfairly penalised’, was chaired by South Wales Chamber of Commerce representative Anthony Kirkbride. It also featured three panellists: local Assembly Member Paul Davies;


dan.muller@herald.email


Head of Housing and Revenue Services for Pembrokeshire County Council (PCC) Kenny McDermott; and Swansea Valuation Office representative Brian Jones. Initiating the discussion, Mr Jones


began by providing a ‘very brief overview’ of how rates are established by using ‘retail zoning’ and ‘rateable value’, the latter of which represents the open-market value of a business’ premises.


“Because values change, rates


change,” Mr Jones said. This in turn means re-evaluations take place every five years. Mr Jones, who at this point was


still seemingly enthusiastic, stated how ‘in many cases we’ve had significant drops in rateable value’, adding that in Pembrokeshire ‘shops have come down by around two%’. This soon became a moot point however, given that nearly everyone present had seen their business rates double or increase fourfold – in fact, one gentleman said he had seen his rates increase by 700% - a record in this particular meeting. Maintaining that ‘it is not


an arbitrary increase’, Mr Jones looked to explain how there are ‘various methodologies


taken


into consideration’, which in turn establishes ‘a rate that reflects the market’. Admitting that he was aware ‘it


might get a bit heated’, Mr Jones offered to take questions from audience members. Owners of The Veg Patch in


St Davids were amongst countless business owners to voice their concerns. Facing a rates increase of £12,000 (rising from £8,000 to £20,000), they were quick point to point out such a dramatic increase could result in the loss of jobs: “That’s someone’s wages; they’ve got a family.” Simon Swinfield, artist and owner


of The Sail Loft in Solva, faced a similarly steep increase, with rates expected to go from £110 per square metre to £260. Raising questions over Jones’


previous point on how changes to ‘rateable value’ can impact on business rates, Mr Swinfield said: “The shop hasn’t changed; nothing’s changed for 50 years probably in Solva.” He added: “We’re long-


established businesses but we’re very seasonal; I don’t understand how we


can increase by 187%.” With audience members largely


made up of seasonal and tourist sector business owners, many appeared frustrated that the issue of ‘seasonality’ had not been had not been taken into consideration during the re-evaluation process. As one business owner stated:


“You walk down Solva High Street now and it’s empty.” The figures which Jones had


centred his opening presentation on came under further scrutiny when one audience member raised questions over his claim that shop rates had gone down by 2%: “Nobody here has said their rates have gone down.” After several more individual


cases were presented, Mr Jones (who undoubtedly bared the brunt of the audience’s frustration), was seemingly unable to provide answers. That he wasn’t familiar with the area or the individual circumstances being raised became a recurring response. Unwilling to give out figures or


concrete evidence, eventually, Mr Jones began to openly encourage people to appeal their new rates: “It’s not the be all and end all; it might not stay at that for the next five years – you can appeal.” However, this proved problematic


in itself, given that ‘the formal appeal process’ can’t start until April 1. Several audience members went on to press Jones as to why it couldn’t start sooner. Playing a kind of mediating


role, Kenny McDermott predicted that there would be a ‘whole raft of appeals’, given that those present will inevitably ‘lose out’ if the current rates remain intact. With reference to PCC’s very


limited input in the re-evaluation process (this is instead overseen by the Welsh Government and the Valuation Office), Mr McDermott added that he would like to see ‘far more freedom’ for local authorities in Wales to establish their own business


rates. Building on this point, Mr


McDermott said: “In Pembrokeshire, we get £10-12 million less than we send to the Welsh Government.” With several references to the


‘huge disparity’ of the new rates, many audience members simply expressed how they were ‘very worried’, with one in particular adding: “You’re going to put a lot of businesses out of business.” Facing mounting pressure, Mr


Jones looked to remind those present that the Valuation Office is ‘an independent organisation’, which receives ‘no benefit from increasing or decreasing rates’. Paul Davies AM, meanwhile,


looked to focus on relief funds that he argued should be made more readily available to businesses. Regarding a Welsh Government


pledge to contribute an additional £10 million to this relief fund, Paul Davies said: “We will press the Welsh Government over the coming weeks as to how they will spend these funds.” Taking aim at his Labour


counterparts and discussing the business rates re-evaluation more generally, Mr Davies went on to suggest that the government ‘should have planned further ahead’ on the issue, particularly given that they ‘knew it would affect businesses detrimentally’. Armed with ‘more ammunition’


to take forward to his next Assembly visit, Mr Davies thanked everyone for attending and sharing their concerns. Speaking after the meeting, and


continuing in a similar vein, Mr Davies said: “I believe that the Welsh Government need to go one step further to ensure that businesses face full support with their business rates, by not just raising the rates relief bands but also splitting the multiplier, so that small businesses in Pembrokeshire and right across Wales are, at the very least, on a level playing field with small businesses in England.”


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