Welsh Liberal Democrats express concerns over new Rate Relief Scheme

1.53.04pm UTC (GMT +0000) Tue 27th Feb 2007

Welsh Liberal Democrat Assembly Members Kirsty Williams and Mick Bates have expressed their concern over the impact changes to the business rate relief scheme may have on small tourism businesses.

The new regulations exclude self-catering properties from gaining relief, and there is concern that this will have a negative impact on the many farmers who have historically been encouraged to diversify into this sector.

Mick Bates, Assembly Member for Montgomeryshire and Welsh Liberal Democrat Countryside spokesperson, said: "It appears the Assembly Government has made a serious error in these regulations, and forgotten about these important rural businesses; now the Minister is being forced to re-open the consultation. I would urge Powys County Council and other relevant bodies to respond, so that the full impact of these changes can be gauged. If, as we suspect, it is found to be a problem, we will be calling on the Assembly Government to amend the regulations and rectify their mistake."

Ms Williams, Assembly Member for Brecon and Radnorshire, said: "I have real concerns for the impact this may have on the family farms in my constituency, who are trying to sustain themselves by providing a service to tourists. This Assembly Government has not been good to farmers - they cannot afford to miss out again."

Notes:

· In December 2006, the Assembly voted to replace the existing rural rate relief scheme with a scheme that would support small businesses across Wales, regardless of rurality. These changes will come into force on April 1st.

· Today, Assembly Finance Minister Sue Essex issued a statement announcing a new consultation to examine to potential effect of the changes on self-catering properties, which are excluded from the regulations, but which may have been eligible under the rural rate relief scheme in some areas. The full statement will be published on the Assembly Government website (www.wales.gov.uk), or can be provided on request.