A SENIOR Welsh Conservative has urged the Welsh Government to rethink its approach to business rates, warning that rising bills are pushing some firms in west Wales to the brink of closure.

Samuel Kurtz MS has written to the Cabinet Secretary for Finance, Mark Drakeford MS, calling on ministers to consider following England’s apparent change of direction on business rates after reports that the UK Labour Government is preparing to reverse proposed increases south of the border.

In his letter, Mr Kurtz says businesses across Pembrokeshire and west Wales are already feeling the effects of higher rateable values, combined with rising costs and falling footfall. He claims a number of firms closed over the Christmas period, with some owners describing business rate increases as “the straw that broke the camel’s back”.

Mr Kurtz, the Member of the Senedd for Carmarthen West and South Pembrokeshire, said business rates were not experienced as a “technical or neutral exercise” by those affected.

“Businesses experience it as higher bills landing on their doormats at a time when overheads are rising and footfall is falling,” he said. “When we are seeing pubs, cafés and shops closing over Christmas, it is clear that the system is not working for the communities it is supposed to serve.”

He has asked whether the Welsh Labour Government intends to reconsider increases to business rates in light of developments in England, and what action is being taken to support firms facing sharp rises that could render otherwise viable businesses unprofitable.

Mr Kurtz also argues that existing reliefs and protections do not adequately reflect conditions on the ground, particularly for small and medium-sized enterprises that fall just outside eligibility thresholds.

“Warm words and reassurances about fairness do not pay the bills,” he added. “What businesses want to know is whether the Welsh Government is prepared to listen, to act, and to prevent more closures on our high streets and in our town centres.”

In response to growing concern, Mr Kurtz and Paul Davies MS are due to host an online meeting on Monday (Jan 26) at 10:30am for businesses across west Wales. The session will focus on the impact of rising rateable values on hospitality, tourism and town-centre firms, and will give business owners the opportunity to share their experiences directly.

The meeting forms part of wider efforts to press for longer-term reform of the non-domestic rates system in Wales, including calls for a freeze or further reduction in the multiplier, broader eligibility for relief, and greater recognition of the pressures facing rural and coastal economies.

Responding to the concerns, a Welsh Government spokesperson said business rates in Wales are devolved and that ministers have already provided targeted support to smaller firms.

They said: “We recognise the pressures facing businesses and have invested more than £1 billion in business rates support since the pandemic. Wales continues to offer one of the most generous packages of relief in the UK, with the majority of small businesses paying no business rates at all.

“We keep the non-domestic rates system under review and will continue to engage with businesses and representative bodies to ensure support is targeted where it is needed most.”

Mr Kurtz, however, warned that without a change of course, further closures were inevitable.

“Unless the Welsh Government acts,” he said, “we will continue to see businesses close, jobs lost and communities hollowed out.”

THE WELSH Liberal Democrats have called on the UK Government to extend the Rural Fuel Duty Relief scheme to rural parts of Wales, arguing that Welsh communities were excluded when the scheme was originally designed under a Conservative administration.

Speaking during a parliamentary debate this week, David Chadwick, the Welsh Liberal Democrats’ Westminster spokesperson, said the current structure of the scheme benefits rural areas in England and Scotland but leaves every part of rural Wales outside its scope.

Rural Fuel Duty Relief is designed to reduce fuel costs in sparsely populated areas, where motorists are estimated to spend around £800 more per year on fuel than those living in urban communities. Under the scheme, fuel retailers can claim a 5p-per-litre rebate on petrol and diesel, which is passed on to customers through lower prices at the pump.

Although Wales is among the most rural nations in the UK, no Welsh areas were included when the scheme was introduced more than a decade ago. As a result, drivers in rural Welsh communities continue to pay higher fuel prices than their counterparts in qualifying areas of England and Scotland.

The Welsh Liberal Democrats say this exclusion should now be addressed, and have proposed a consultation to determine which areas in Wales would qualify for relief. Counties including Powys, Ceredigion, Carmarthenshire and Gwynedd have been identified by the party as likely beneficiaries.

The party has also renewed calls for the introduction of a Pumpwatch scheme, which would allow motorists to easily compare fuel prices and guard against unfair pricing. A similar scheme operates in Northern Ireland, where fuel prices are often among the lowest in the UK. The Liberal Democrats say the previous Government committed to introducing Pumpwatch but did not implement it before the end of the last Parliament.

However, the UK Government has previously argued that fuel duty policy must balance support for rural motorists with wider fiscal pressures, and has pointed to the temporary 5p fuel duty cut and freeze on duty rates as measures intended to help drivers nationwide. Ministers have also highlighted devolved responsibilities in Wales, noting that transport policy and broader rural support are shared between Westminster and the Welsh Government.

Commenting, Mr Chadwick said:
“People in rural Wales are being clobbered by sky-high fuel costs, yet they were deliberately excluded from a scheme designed to help rural drivers elsewhere in the UK. That is fundamentally unfair.

“In Parliament this week, I challenged the Government on why rural communities in Wales are locked out of Rural Fuel Duty Relief while parts of England and Scotland benefit, purely because of the way the scheme was set up.

“Rural drivers should not be punished for where they live, and I will keep pressing for a fair deal for communities across rural Wales.”

The Herald has contacted the UK Government for comment on whether it plans to review the scope of the Rural Fuel Duty Relief scheme to include areas of Wales.

THE CONFEDERATION of Passenger Transport has welcomed Welsh Labour’s pledge to introduce a £2 cap on all single bus fares across Wales if the party leads the next Welsh Government, while warning that any such policy must be properly funded to be sustainable.

Responding to the announcement, Confederation of Passenger Transport (CPT) said lower fares could play an important role in boosting bus use and cutting car dependency, but cautioned against unfunded commitments.

Aaron Hill, Director of CPT Cymru, said buses remain the most widely used form of public transport in Wales.

“Buses are Wales’s favourite form of public transport, carrying nearly 200,000 passengers a day. They’re a green, affordable and convenient alternative to travelling by car,” he said.

“Bus operators welcome ideas and policies that will encourage people across Wales to take public transport more often.”

Mr Hill said Wales had lagged behind other parts of Great Britain in recent years when it came to fare initiatives, pointing to England’s £2 cap scheme, which has been extended several times with central government backing.

“Wales has been slow, in comparison to the rest of Great Britain, to invest in lower bus fares, so a cap of £2 would be a welcome step in boosting public transport usage,” he said.
“It is vital that any cap is backed with adequate funding, and that a strategy is in place to capture gains for the long term if the cap is for a limited period.”

Welsh Labour has also pledged to introduce 100 new bus routes across Wales as part of its wider transport plans. CPT said the ambition was positive but stressed the need for realistic delivery.

“Bus operators welcome Welsh Labour’s pledge to introduce 100 new bus routes,” Mr Hill added.
“We stand ready to work with the party on identifying pockets of demand and on discussing how this goal could be fulfilled, while ensuring value for money.”

However, the organisation warned that past experience showed a gap between political ambition and financial reality.

Public funding for bus services under the current Welsh Government has, CPT said, not always matched the scale of commitments made by ministers, with operators facing rising costs linked to fuel, wages and vehicle investment.

“Public funding under the current Welsh administration has not always been sufficient to meet the level of ambition set out by politicians,” Mr Hill said.
“It is vital that, as a nation, we bridge this gap and that pledges are backed by hard cash.”

Opposition parties have previously raised concerns that fare caps, while popular with passengers, can place significant strain on already stretched transport budgets if not fully funded, potentially leading to service reductions elsewhere. Some local authorities have also warned that rural routes, which are more expensive to operate, could be at risk if funding does not keep pace with lower fares.

CPT said any future investment must be carefully designed.

“All public investment in buses must be designed to generate value for money and to deliver a visible impact for passengers,” Mr Hill said.

Welsh Labour has argued that cheaper fares and expanded routes would increase passenger numbers, reduce congestion and help meet climate targets, but has yet to set out detailed costings for the proposals.

With bus services under pressure across Wales, CPT said collaboration between government, local authorities and operators would be essential if fare caps and network expansion are to deliver lasting benefits rather than short-term gains.