WELSH NON DOMESTIC RATING: TRANSITIONAL ARRANGEMENTS (Hansard, 30 November 1994)

§ Lord Rodger of Earlsferry

The revaluation will result in significant local and sectoral changes in rateable values and rates bills. Around 76,000 properties will see increases in their bills, and around 26,000 will see reductions. The Welsh Office's consultation paper, published last month, outlined proposals for transitional arrangements to phrase in the effects of these changes. In the light of responses to that paper and the package of support announced by the Chancellor today, the Government propose that no business in Wales will face a year-on-year increase of more than 10 per cent., after allowing for inflation. For property with a new rateable value of less than £10,000, the maximum real increase will be 7.5 per cent. For small composite properties such as shops with living accommodation, the limit will be 5 per cent.

The Government estimate that around 62,000 Welsh properties will benefit from relief. I am sure this will be widely welcomed by the business community.

The Exchequer contribution will cover part of the cost of the scheme. The remainder will be met by limiting real reductions in rates bills, as proposed in the consultation paper. For 1995–96, the limits will be 10 per cent. for properties with a rateable value under £10,000 and 5 per cent. for larger properties.

Other details of the scheme will be as proposed in the consultation paper. Regulations giving effect to the transitional arrangement will be laid before Parliament shortly.