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Written Statement - Non Domestic Business Rates

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Carl Sargeant, Minister for Social Justice and Local Government

Following on from today’s budget announcement, I have decided to extend the small business rate relief scheme. It was my decision that the original scheme announced in 2010 should apply to Wales. . The original Scheme was due to end on 30 September 2011. My decision today will extend it to 30 September 2012.

My officials are seeking full details of the Chancellor’s proposals as a matter of urgency but under the existing scheme business premises with a rateable value of up to £6,000 receive 100 per cent rate relief and those with a rateable value of between £6,001 and £12,000  receive relief that reduces on a tapered basis. For example, business premises with a rateable value of £8,000 get around 66 per cent and those with a rateable value of £10,000 get around 33 per cent relief. I do not anticipate that the terms of today’s announcement will make any material difference to these arrangements.      

My announcement today means that well over half business properties in Wales will  benefit from business rate relief which clearly demonstrates the Assembly Government’s commitment to sustaining business and enterprise through the continuing difficult economic conditions.  Indeed around half of those businesses eligible will not pay any business rates at all.

The extended relief scheme announced today runs alongside the Assembly Government’s own small business rate relief arrangements which  extends significantly  the range of the relief available in Wales. Where Welsh businesses receive a higher rate of relief under the current Assembly Government arrangements than under the scheme extension announced today they will continue to receive the rate of relief most beneficial to them.

For example:

  • registered child care premises with a rateable value £9,001-£12,000 will continue to get 50 per cent relief;
  • premises qualifying under the Assembly Government’s scheme for relief of 25% with a rateable value between £10,501 and £11,000 will continue to receive the 25 per cent discount;
  • Post offices will continue to receive 100 or 50 per cent relief.

To qualify for relief business premises must:

  • Be fully occupied; and,
  • not be an excepted premises for the purposes of the Non-Domestic Rating (Small Business Relief) (Wales) Order 2008 (for instance those occupied by a council, police authority or the Crown; and those occupied by charities, registered clubs, or not-for-profit bodies that are subject to discrete 100 per charitable rate relief arrangements.)