The recent proposed revaluation of non-domestic rates (NNDR -business rates) has thrown up some very alarming increases for businesses in Monmouthshire.
65% of businesses in the County have found their draft rates increase with a number hiked by more than 200%. In practice this means if these proposals are confirmed, some businesses face increases next year running into tens of thousands of pounds. There seems to be a pattern of rural counties facing increases whilst the larger towns and cities are decreasing. As the system is based upon notional rental values, it seems unlikely that the shift in rental values of business premises between 2010 and 2015 reflects the increases in rateable values proposed for some Monmouthshire businesses.
If this revaluation is not challenged it may well see some of our leading retailers and hospitality businesses in particular being unable to continue trading.
If businesses are forced to pay huge increases based on these revaluations whilst they await the outcome of appeals, severe cash flow problems may endanger the future for some. At the very least we urge WG not to impose increases until the results of appeals are known.
It is also of concern to this Council that whilst the WG has announced a transitional scheme for small businesses affected by the increase, it has not done the same for the larger businesses which will be harder hit. We call for sympathetic transitional arrangements for all businesses.
The Welsh Government has the power to implement or postpone these proposals. In the light of the concern expressed by this Council and many businesses in Monmouthshire, we urge the WG to postpone these draft proposals to give time for a thorough review of the methodology and results thrown up from this revaluation to be considered.
Minutes:
The recent proposed revaluation of non-domestic rates (NNDR – business rates) has thrown up some very alarming increases for businesses in Monmouthshire. 65% of businesses in the County have found their draft rates increase with a number hiked by more than 200%. In practice this means if these proposals are confirmed, some businesses face increases next year running into tens of thousands of pounds. There seems to be a pattern of rural counties facing increases whilst the larger towns and cities are decreasing. As the system is based upon notional rental values, it seems unlikely that the shift in rental values of business premises between 2010 and 2015 reflects the increases in rateable values proposed for some Monmouthshire businesses. If this revaluation is not challenged it may well see some of our leading retailers and hospitality businesses in particular being unable to continue trading.
If businesses are forced to pay huge increases based on these revaluations whilst they await the outcome of appeals, severe cash flow problems may endanger the future for some. At the very least we urge WG not to impose increases until the results of appeals are known.
It is also of concern to this Council that whilst the WG has announced a transitional scheme for small businesses affected by the increase, it has not done the same for the larger businesses which will be harder hit. We call for sympathetic transitional arrangements for all businesses.
The Welsh Government has the power to implement or postpone these proposals. In the light of the concern expressed by this Council and many businesses in Monmouthshire, we urge the WG to postpone these draft proposals to give time for a thorough review of the methodology and results thrown up from this revaluation to be considered.
Prior to the presentation of the motion, Councillor Easson addressed Council and requested clarity surrounding the validity of the motion on the basis that Councillor Easson had himself submitted a motion which had been declined for inclusion at the meeting as it was deemed outside standing order 12.3.. The Monitoring Officer advised that he had made the decision that the motion submitted had not complied with 12.3, whereas the motion being raised by Councillor Greenland refers to specific Monmouthshire businesses. He added that if Council wished, they could amend the wording in the constitution.
During debate we noted the following:
· Members agreed that village halls were at the heart of the community and would also be affected. At present village halls receive 80% discount on business rates as a grant from the Council.
· The Leader of the Council recognised the pressures on businesses and added that we owe it the businesses of Monmouthshire to support this motion. He expressed thanks to Councillor Greenland for the work behind raising the motion, and Members for their support.
· Councillor G. Howard highlighted it was clear that no business rates would be paid by empty shops and hotels, but expressed disappointment in Welsh Government regarding the impact the valuation would have on green shoot businesses aiming to increase footfall.
· The Leader of the Opposition noted that the assessment had been carried out by the independent Valuation Office, and questioned if the Conservative Group were disputing the independence of the Valuation Office. Councillor Batrouni declared that there was no opposition to the motion from the Labour Group, but felt the statement was a political motion regarding Welsh Government.
· Councillor G. Down declared that he supported the motion. He added that village halls would see an increase in business rates, and invited Councillor Murphy to consider whether 80% relief was sufficient. Few businesses could survive a 200% rise in rates, and it was thought some businesses would close as a result. Councillor Down thought National and Welsh Governments should look at the relationship between business non-domestic rates, and council tax in order to find a way to rebalance the contributions for local services. He considered the fault was not with the Valuation office, but lay with Welsh Government.
· Councillor A. Watts highlighted that the number of small businesses paying no business rates had increased, and we should be clear on the conflicting evidence and would like to see further clarity.
· County Councillor Greenland responded that in raising the motion he had not aimed to be political and thought it to be a subject on which all could agree on. He acknowledged that the Valuation Office Agency is an independent body, part of HM Customs and Excise, carrying out duties of valuations of business premises in Wales on behalf of Welsh Government. The final decisions are a Welsh Government issue.
The day previously, Councillor Greenland, along with the Chief Executive, The Head of Enterprise and Innovation and David Cummings, a representative of the business community, had met with the Chief Valuer of Wales to discuss issues and gain an understanding of the methodology and process. The meeting had been harmonious and provided information for further discussion going forward.
The motion was duly seconded, and upon being put to the vote the motion was carried.