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Taking rate relief from national chains and re-directing cash to small firms is one proposal for a new business rates scheme in Wales.

The Welsh Government wants businesses tell them how to reform the Small Business Rates Relief (SBRR) Scheme from next year.

This could involve redirecting relief from certain businesses, such as national chains which occupy multiple small premises across Wales, to support businesses which are more likely to benefit.

Funding would then be reinvested in making the scheme more generous for small businesses like local shops, cafés and restaurants which might only operate from one or two premises.

Another proposal is whether any additional types of businesses should be excepted from the scheme.

Current exceptions include non-domestic properties like car parks and phone masts, as well as those occupied by councils and police.

The consultation asks how the permanent scheme could be used to support certain industries or sectors, such as childcare, if there be a robust evidence base to do so.

Mike Learmond, North Wales senior development manager, said: “FSB Wales welcomes the Welsh Government’s commitment to preserving the £110m a year spent on rates relief, and to make rates relief permanent.

“FSB Wales has previously called for changes to the business rates system to make it fairer to small businesses, such as by splitting the multiplier between large and small premises, and we will be feeding these ideas into the consultation.

Businesses need to engage

“We look forward to engaging with members during the consultation period and will be responding to the Government’s proposals in due course.”

He added: “We would encourage as many small businesses as possible to engage with the consultation process in order to ensure that the widest possible views are represented."

Sara Jones, head of policy and external affairs, Welsh Retail Consortium, said: “It’s good to see the Welsh Government has accepted high business rates bills are a significant problem.

“There’s no doubt the ever-increasing rates burden hits Welsh businesses hard; and it’s right ministers are looking at how to lessen this burden.

'Complicated tweak'

“However, instead of focusing on lowering the rates burden for all businesses, this relief risks being another complicated tweak which will further discourage investment in Wales.

“Increasing the rates burden for some businesses to help others is not a real solution, merely another sticking plaster when surgery is required.

“Hopefully the consultation will provide a chance for the Welsh Government to rethink their approach, and develop a more sustainable approach which focuses on long-term economic growth for Wales.”

Colin Brew, chief executive of West Cheshire & North Wales Chamber of Commerce, said: “In a recent chamber survey, the results showed it is small businesses who are most worried about the burden of business rates, with one in two saying it’s of great concern, the highest of any external factor affecting their business.

“This consultation is therefore welcome as any relief on the upfront costs of doing business will be welcome by firms across North Wales.”

In 2017-18, the Welsh Government is providing more than £110 million of rates relief for small businesses. The new permanent scheme will maintain this level of investment.

The Welsh Government is also asking for any other views from ratepayers about how the permanent SBRR scheme could continue to be developed in the future to ensure it is responsive to business needs.

Questions include whether support should be permanent or time-limited and whether it should be focused on businesses that are in line with Welsh Government priorities – whether social, economic or environmental.

Welsh Government finance minister Mark Drakeford said: “We want to provide as much certainty and security for small businesses as we possibly can.

“One of the best ways we can do this is by confirming that we will be introducing a £110m permanent SBRR scheme in 2018 and, in doing so, extending a tax cut that will help boost long-term economic growth for Wales.

“Today marks the start of an extensive consultation with ratepayers, business representatives, other taxpayers and local authorities.

“Their views are absolutely essential to making this scheme a success and we want to work with them closely, constructively and attentively. I urge everyone to have their say before the consultation closes on Friday, October 13.”

Purnima Tanuku OBE, chief executive of National Day Nurseries Association (NDNA) said: “We wholly welcome this consultation.

“Relief on business rates would make a huge difference to a childcare sector beset by underfunding and rising costs.

“Nurseries are so important to the economy, employing many thousands of people and allowing parents to work.

“Business rates have been increasing at a time when settings just cannot afford to pay more, impacting on fees to parents and relief would help to balance nursery books and keep costs to families affordable.”

To contribute go to gov.wales/consultations