Call to review business rates to kickstart our town's economy

Plaid Cymru councillors want a radical overhaul of town-centre business rates to kickstart a town's economy.

Wrexham has a number of empty shops and among the main complaints from local shopkeepers is the high cost of business rates in town-centre locations.

Councillor Marc Jones, Plaid Cymru's group leader, represents much of the town centre, which lies in his Grosvenor ward.

He said:

"Small businesses and landlords alike complain that business rates in the town centre are out of all proportion to the footfall and income generated in that area. This is largely due to changing shopping habits, with people spending more online, in out-of-town shopping centres and the large supermarkets. Despite this, shops in the traditional town centre and high street are still being clobbered with premium rateable values and therefore higher-than-necessary rates.

"Although councils collect rates, it's the Valuation Office Agency that decides on a property's rateable value and the Welsh Government that sets the rates every year. So our campaign to make it easier to re-open and keep open town centre shops, pubs and restaurants is aimed squarely at the Welsh Government and the VOA, which is controlled by the Treasury.

"Our call is simple - for Welsh town centres to be given a kickstart by ensuring business rates better reflect the radical changes in our shopping habits. If we don't make that change, our high streets will become ghost towns.

"The Scottish Government has adopted a two-tier system for small retailers and larger businesses such as supermarkets, which is one way forward. As a Plaid Cymru group, we're also advocating a review of all property values to reduce that town-centre premium as it's not reflective of reality any more. We believe our town centre can be revived and regenerated but it's unrealistic to expect businesses to open there when they face the burden of enormous business rates. Landlords too must accept their part in this by reducing rents to realistic levels."

He said the Welsh Government's £23 million fund over the next two years to enable councils to reduce rates for businesses by "up to £2,500" was a small step in the right direction but didn't address the fundamental shift in shopping habits:

"This will temporarily reduce the rates for some town centre businesses but it's not the gear shift town-centre businesses need. I don't think this Welsh Government understands the difficulties facing small businesses who are trying to keep their heads above water at the moment, let alone the deterrent premium rates are for new businesses. Rate relief needs extending for the smaller businesses and that means rebalancing our rating system in favour of struggling town centres. 

"If we don't have a radical overhaul of how we tax our town-centre businesses, we're in danger of losing them."

Cllr Jones added that the Plaid Cymru councillors would be consulting with town-centre businesses about the idea in the coming weeks.