Written - Small Business Rates Relief Scheme: Self Catering Industry

On 12th December 2006 members voted to make orders and regulations to replace the rural rate relief scheme with a scheme that provides relief to small businesses and post offices across Wales.  The scheme has been widely welcomed but particular concerns have been expressed in respect of the decision to exclude self-catering properties (not including caravans) from gaining relief.

.During the consultation on the proposed scheme for small business rates strong arguments for not including these businesses were put, and I summarised these in my letter dated 4 December 2006 to Assembly Members prior to the plenary debate. Nevertheless concerns and representations on this category of exclusion have been made to me and in order to be fair I feel that this is an issue that should be given more detailed consideration.

It is therefore my intention to consult with local authorities, and others including representatives of the tourist industry, to obtain further views about the impact of excluding this particular business sector from gaining relief under the new scheme. Some of the issues I will want to examine are the extent to which such businesses qualified for relief under the old enhanced rural rate relief scheme; whether qualification under that scheme was mandatory or at the discretion of local authorities; and whether they would qualify for relief under the new scheme. I will also invite local authorities to let me know what impact self-catering businesses have on individual communities in their areas and on tourism generally. In the meantime, if any business in this sector suffers hardship then local authorities have the discretion to provide rate relief under existing legislation.

The consultation will take place during March. Officials will then consider the responses and brief the new Assembly Government so that it can take an informed and early decision as to whether to make changes to the scheme. I will write to Assembly Members giving details of the consultation.