'Why should we pay more because we're in Wales?' Businesses want U-turn on support drop

  • Video report by Carole Green. Words by Beth Thomas.

Business owners have criticised the Welsh Government's desire to cut business rate relief, saying such a move would be "unfair" when more help would be on offer in England.

The Welsh Government has proposed reducing the relief for retail and hospitality from 75% to 40% - despite it remaining at 75% in England.

First Minister Mark Drakeford has rejected calls to halt cuts to business rate relief for shops and restaurants, with the change proposed as part of the Welsh Government budget to try and prop up the NHS and councils.

Julie Hyslop said the 75% business relief rate has helped her following the effects of the coronavirus pandemic Credit: ITV Wales

It comes as a number of hospitality businesses have announced their closure since the start of the year, including Cardiff restaurants Kindle and The Brass Beetle and Pontcanna pub The Conway.

In Aberystwyth, the Michelin-starred restaurant SY23 announced its closure shortly before Christmas due to "unprecedented challenges of the current financial climate".

Julie Hyslop is the owner of Patagonia Welsh Roots, a restaurant based in Prestatyn. She says the 75% rate relief helped during the cost of living crisis and while the business was recovering from the effects of the coronavirus pandemic.

She said: "That 40% relief to us compared to a business in England is just about £2,500 for the year. So, why should we pay more because we're in Wales when England are having this help? I don't think that's fair."

Gemma Williams owns The Little Cheesemonger, just across the road from the restaurant. She says the business is able to deal with its current relief rates "quite easily" but with businesses facing rising energy bills and people having less money to spend due to the ongoing cost of living crisis, she fears this could change.

Gemma Williams of The Little Cheesemonger Credit: ITV Wales

"I think the rates system is not meant for micro-businesses like us," she told ITV Wales. "It should be different looking at micro-businesses compared to larger businesses and the rates should think about that.

"It's always stress as a business owner, but you do it because you love it. But, then why, when we could open a business in England and get a better deal, would we keep our businesses here?"

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Mr Drakeford was questioned over the proposal during First Minister's Questions on Tuesday, January 16.

Plaid Cymru leader Rhun ap Iorwerth challenged Mr Drakeford, saying the change in rate reliefs would "hits both shops and hospitality hard".

Mr Drakeford said: "We will not be reconsidering that decision, unless Plaid Cymru can tell me where the money that has been diverted from business rate relief to support many other programmes, including many of the other programmes that, week after week, Plaid Cymru members will tell me we have to find more money... if he will tell me where that money is to come from, then I'll consider whether I think that he's made a sufficiently compelling case."

He said the government was "providing a pathway out of the subsidy for the sector, and I think we have made the right decision".

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