§ 5. Mr. Ieuan Wyn JonesTo ask the Secretary of State for Wales what representations he has received regarding the level of business rates imposed on small businesses in Wales.
§ Mr. Gwilym JonesSeveral.
§ Mr. Ieuan Wyn JonesIs the Minister aware that, as a result of the revaluation of business premises for the purposes of the unified business rate, holiday centres, caravan parks and retail premises in my constituency are suffering massive increases and will have serious problems meeting their new bills? Does he realise that, for example, up to 20 per cent. of retail premises in my constituency have closed over the past four years? Even allowing for transitional relief, those businesses will pay twice the rate of inflation on their new bills from 1995 548 onwards. Will the Minister intervene directly and ask the district valuer to be more realistic in terms of rental values in rural areas?
§ Mr. Gwilym JonesI hope that the hon. Gentleman realises that, as well as the change in the rateable value, there has been a consequential reduction in the rate in the pound, which goes down from 44.8p to 39p. The examples that the hon. Gentleman cites and all other small businesses in Wales have transitional relief and opportunities to appeal to the district valuer against the assessment after 1 April. I firmly believe that the system of uniform non-domestic rates is a far better system for businesses throughout Wales. It gives them the certainty, except in years of review, that they will face an increase of no more than the rate of inflation. As we can see from the emerging pattern of council tax increases in Wales, business would have suffered far worse if the uniform business rate had been determined by local councils.
§ Mr. Alex CarlileDoes the Minister agree that small caravan parks are a useful form of diversification for many farmers and that they provide substitute employment? Does he recognise that there will be a huge increase, particularly in the business rate paid by small caravan parks with fewer than 50 pitches, and that the appeals system will simply clog to a halt because of so many appeals? Will he institute an immediate inquiry into the effect of these changes on the caravan and holiday industry in Wales, which is in despair at the changes?
§ Mr. JonesI readily acknowledge what the hon. and learned Gentleman says about the worth to agriculture and tourism generally of caravan parks. However, he should remember that they have not only the opportunity of transitional relief but the right of appeal. The appeals system, which I fully support, wishes to deal with appeals as expeditiously as possible.
§ Dr. SpinkDoes my hon. Friend accept that small businesses in Wales would benefit from more prudent budget setting and more prudent policies by local councils? Does he also accept that small businesses in Wales benefit greatly from inward investment, which generates much business and many jobs in the small business community?
§ Mr. JonesI certainly accept the thrust of my hon. Friend's point that businesses would suffer far worse if their rate burden were determined by councils in Wales. We know that this year small businesses will face, at worst, a 7.5 per cent. increase. The trend has not been finalised, but if they were to suffer the increase that is being imposed by councils in Wales, it would be more like 12 per cent.