CALLS are being made for business rate relief to be restored.
Plaid Cymru says some of the consequential funding announced for Wales in the UK Government budget should be used to restore business rate relief.
Plaid Cymru Finance spokesperson, Heledd Fychan called for the Labour Government in Wales to restore business rate relief to 75 per cent, the level at which they stood before the Welsh Government cut them to 40 per cent in April 2024.
The restoration of the business rate relief is expected to cost an extra £50 million according to the Welsh Government.
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Ms Fychan said small businesses in Wales were facing a double whammy considering the cuts made to business rate relief made in Wales earlier this year, alongside the employer National Insurance contribution increase announced by the Chancellor last week.
The Chancellor announced in her Budget that National Insurance contributions made by employers increased from 13.8% to 15% and the threshold at which employers start paying the tax on each employee’s salary decreased from £9,100 per year to £5,000.
Ms Fychan MS said: “Wales’ economy is struggling, with economic inactivity here the second highest of the UK nations and regions, and unemployment the highest in the UK. A situation that will only be worsened by Labour’s increase in National Insurance contributions made by employers. These raises, coupled with the cuts to business rate relief earlier this year, result in a double whammy to small businesses and high streets in Wales, and therefore has a disproportionate impact on Welsh businesses.
“Labour like to call themselves the party of business, and they claim that the latest Budget has given them more money to spend. It’s time they proved this, by supporting our small businesses in Wales by restoring the business rate relief to 75%.
“Wales’ economy is dependent on the small businesses who employ our workers and line our high streets. They are currently being let down by Labour, both in Wales and in Westminster. Plaid Cymru will always back Welsh businesses and will grant them the support they need to thrive.”