Help for Welsh businesses as rates capped at 2%

Two City AMs have voted in favour of freezing business rates in Wales, which will see non-domestic rates capped at 2% in an effort to support Welsh shops and businesses during tough times.

The order implementing the cap, which was introduced by the Welsh Labour Government on Tuesday [14^th January], will mean that business rates, which were set to rise in line with the rate of inflation at more than 3.2%, will be capped at just 2% for the financial year 2014-15.

The order received the unanimous support of AMs from all political parties and will, from April 1^st 2014, put Welsh business rates in line with business rates in England and Scotland.

There will be no financial impact to local councils as the funding to allow reduced bills will be provided by the Welsh Government via the Non-Domestic Rates Pool.

Commenting on the policy, Swansea East AM Mike Hedges said:

“This is good news for Swansea businesses and the local economy. With many high street businesses already struggling due to the hard economic times, a cast iron guarantee that business rates will be frozen at 2% will come as welcome news to the Swansea business community.”  

Swansea West AM Julie James added:

“The decision to cap business rates is both pragmatic and sensible, and will allow our local businesses to remain competitive with those in England and Scotland. With local councils like Swansea facing tough financial decisions due to budget cuts from Westminister, I’m pleased that the Welsh Government have agreed to cover the cost of the freeze so that Swansea shops and businesses can benefit as a result.”