A TEN million pound relief fund is to be made available for Welsh small businesses impacted by increases in their business rates.

It was announced on Saturday that an extra £10 million will be made available to help high street retailers, pubs and restaurants with their business rates.

But despite the extra funding there are doubts about where the money will go, and whether the additional £10 million will be enough to prevent small businesses suffering.

One business which has seen major increases is MonTeas in Monnow Street, Monmouth. The shop, which sells fine loose leaf teas and tea equipment, will see its rateable value go up by more than 60 per cent from next April.

Owner David Tovey said the extra £2,500 he will be charged in annual rates could “kill off” his business.

“The rateable value and the business rates that are applied is an indiscriminate death sentence on our high streets,” he said. “It’s a tax on postcode and not on the ability to pay.”

The funds will be targeted at high-street ratepayers, many of which have seen their rates increase significantly as a result of the 2017 revaluation undertaken by the independent Valuation Office Agency. The extra funding was announced by Welsh Government Finance Secretary Mark Drakeford this week.

Mr Drakeford said: “Some retailers across Wales are seeing substantial increases in their rates. There are towns and communities, which have been disproportionately affected.    

“Equally there are many high streets across the country where business rates are falling but retailers are still struggling.

“We want to be in a position where we can offer these businesses the extra support they need.”

Monmouth MP David Davies said the new fund would be “far too small” to make any real difference given the number of businesses set to be hardest hit when the revised rates come into force on 1st April next year.

“The devil is in the detail and we will have to wait and see how the Welsh Government intends to allocate this money,” he added.

“It is some progress at least. However, unless proper action is taken to reduce the multiplier charged on business rates, then the high streets of Monmouthshire’s towns will be increasingly dominated by charities and chain stores.

“MonTeas is one of many small businesses that may be forced to close if these unfair rises go ahead.”

The news has been cautiously welcomed by Monmouthshire County Council, after the council agreed to urge the Welsh Government to postpone draft rates proposals. 

Councillor Bob Greenland, deputy leader of the council commented: “It still remains a mystery why Monmouthshire seems to have been targeted, but because it has been, I would expect a good slice of the £10 million to come our way.

“This change in the Welsh Government stance would not have come about without the combined help of business leaders, politicians and council officers all working together. May I thank everyone for their efforts.”

Monmouth AM Nick Ramsay, who arranged a meeting in Usk and started a petition against the increases, added: “I welcome any additional support for Monmouthshire businesses including shops and pubs facing huge hikes in their business rates bill next April.

“As we know some businesses will be made unviable if these increases go ahead and I have been urging the Welsh Government to take action to provide extra business rate relief for those most in need.

“Of course we now need to see the detail of these proposals and I will be asking the Government to provide these early in the New Year in time for the finalised Assembly budget.”