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CLA make clear demands in ratings review

CLA make clear demands in ratings review

The CLA will be stressing the need to maintain rate relief for small businesses in its evidence to the Welsh Government's independent task and finish group, set up to review business rates.

CLA Wales Policy Advisor Sue Evans said the issue was vitally important to rural businesses. It was crucial to retain existing rate reliefs to enable small businesses to survive this very difficult economic period, and also to make adjustments for self catering operators.

The difficulties encountered by self catering holiday units arise from changes to the Local Government Finance Act in 2010. A self catering holiday unit in Wales assessed for business (non-domestic) rates and so eligible for relief must be available to let for 140 days and actually let commercially for 70 days in the previous 12 months.

She added: "CLA members have reported that the addition of the requirement to actually let every property for at least 70 days means they are being charged council tax on the least profitable holiday units, whereas they would have been eligible for rate relief with business rates.

"In one instance, we have members who have three apartments empty through a combination of the recession and water damage. The change in legislation means the Valuation Office has reassessed them and the change is likely to cost them at least £3,000 in the current a year.

"They will now have to pay council tax rather than business rates on the units which they were not able to let for 70 days last year. They would have qualified for small business rates relief, but now have to find extra to pay for the units which are producing the least income."

Sue Evans added that the irony is that the amendment was made to ensure that second homes were not able to avoid paying. The fact is that it is penalising genuine businesses suffering in the recession.

Editor's note: A CLA member affected, Mrs Marita Gray-Parry, of Llanrug, is Welsh speaking and is on 01286 870210. She has been in the self-catering business for nearly fifty years and says the recession is affecting the built heritage of Wales.

Mrs Gray-Parry says that losing rate relief will affect her ability to maintain the building, which is a Grade 2 star castellated house, located halfway between Caernarvon and Llanberis.

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