The Welsh Government’s £98m Small Business Rates Relief scheme will be extended for 2017-18, Local Government Secretary Mark Drakeford has announced.
The extended and new schemes will play a key part in delivering the manifesto pledge for a tax cut for small businesses.
The Local Government Secretary and Economy Secretary Ken Skates made the announcement as they met the team at Portuguese bakery Nata & Co in Cardiff’s Bute Street.
Nata & Co is among the 70% of small businesses in Wales which will benefit from small business rates relief – about half of all eligible businesses will pay no rates at all.
Under the current scheme, business premises with a rateable value of up to £6,000 will receive 100% relief and those with a rateable value between £6,001 and £12,000 will receive relief on a tapered basis from 100% to zero. These arrangements are being extended to 2017-18.
Professor Drakeford said:
“Delivering tax cuts for small businesses was one of our key manifesto pledges. One of the most effective ways in which we can do this is by making our small business rates relief scheme permanent.
“We know business rates can represent a high proportion of costs for small businesses and that’s why we want to give them the certainty and security that this vital source of support will continue in 2017-18.
“Over the course of the next year, we will be considering how we can improve the system for 2018, so we better target support for small businesses and, acting on the feedback we’ve received, ensuring the small minority who try to avoid paying rates pay their fair share.”
Welcoming the announcement, Economy Secretary Ken Skates said:
“Nata & Co is a great example of a thriving small business – its reputation for excellent Portuguese produce is well known in Cardiff and beyond.
“I’m delighted we will be able to continue to help this and thousands of other small businesses through the small business rates relief scheme.
“We want to see economic growth in all parts of Wales and schemes like this go a long way in helping our small businesses strengthen and expand.”
Nata & Co’s owner Filipe Brito said:
“The Small Business Rates Relief Scheme is one of the best forms of support we’ve received - it’s helped us to grow and expand the company. It’s the kind of support that would be very rare to get in other countries.”
Details about the Small Business Rates Relief scheme are available at businesswales.gov.wales.