Business rates revaluation to hit prime city sites

Business rates have been blamed by many for the closure of high street shops in places such as Newport

Companies occupying prime city centre sites are set to be worst hit by new valuations for business rates.

The first review for seven years shifts the tax burden away from struggling local high streets and poorer areas, CBI Wales vice chair Chris Sutton said.

The Welsh Government has announced a £10m fund to help around 7,000 small firms facing a rates hike as a result.

Sara Jones from the Welsh Retail Consortium said traders still feared above-inflation rises in their bills.

The Federation of Small Businesses said there would be "winners and losers", but the transitional relief would help.

The new rating list for England and Wales will take effect in April 2017 and reflects the rental values of properties.

Overall figures for Wales show a 2.9% cut in rateable values, with shops falling by 8.8% and offices by 7%.

Across England, rateable values rise by 9.1%, ranging from a 22.8% increase in London to a 1.1% fall in the north east.

Company owners can check their draft rateable value online to see if they face an increase or cut in their rates bill.

Firms based in Cardiff city centre could see the biggest increase in rateable values

"We expect to see a significant increase in values for Cardiff and, overall, for sectors such prime offices, data centres and trade counter retail," Mr Sutton said.

"At the other end of the scale we are likely to see a reduced burden for our more disadvantaged areas such as the mid and upper valleys and sectors such as secondary retail [local high streets]."

Mr Sutton, who also chairs a Welsh Government advisory panel on business rates, called for more regular revaluations - suggesting every three years - to make them more accurate.

Sara Jones, head of the Welsh Retail Consortium, said shopkeepers still feared another above-inflation rate rise in the spring.

"There is a pressing need to reduce the cost of doing business," she said.

'Winners and losers'

"Retailers and other businesses are continuing to stump up huge amounts for a business rates system that is frankly no longer fit for purpose and which is holding back investment in our high streets."

Janet Jones, Wales policy chair for the Federation of Small Businesses, said she welcomed the announcement of transitional relief from the Welsh Government.

"There are inevitably winners and losers in the course of any revaluation, and there has been particular uncertainty this time because of the delay to the most recent revaluation exercise," she said.

"We look forward to working with Welsh Government on fundamental reform of the business rates system so that it better meets the needs of Wales' local economies in the years to come."

Control over the level at which business rates are set was devolved to Wales in 2015.