Businesses on brink facing 15% rate hike.

Byline: DAVID POWELL

SHOPKEEPERS yesterday criticised a proposed rise in Business Rates which is due to come into force next Spring.

Retailers face paying hundreds of pounds more in business rates next year thanks to a rise of about 15%, according to new research.

Welsh Conservatives have learned that firms on high streets across Wales will be hit with higher bills because of a revaluation which comes into effect next April.

The Government's Valuation Office Agency (VOA) carries out a revaluation of all rateable values in England and Wales every five years.

The next revaluation is due to come into effect on April 1, 2010.

Welsh Conservatives say that on Mostyn Street, Llandudno, businesses will be paying an additional pounds 550,000 which equates to an increase of 15% on their business rates.

North Wales chamber of commerce, which covers the entire region, criticised a business rate rise. NWCC membership manager Dave Roberts said: "It's a tough time without being hit by another 15% rise - especially when inflation is only just over 1%."

Shopkeeper Johnny Taylor, at Craft-Land in Mostyn Street, was dismayed.

He said: "A 15% rise would cost me thousands."

He pays pounds 22,000 over ten months for his shop and pounds 18,000 for his premises next door.

Another shopkeeper Chris Wise, of Bookwise, on Mostyn Street said: "A rise of 15% is ridiculous in the current climate.How can they justify a 15% rise when there are so many empty shops here? Graham Stone, of Vollams newsagents in Gloddaeth Street, Llandudno, said: "I'm horrified. We already pay pounds 770 a month. A 15% rise would be about pounds 100 more."

And Tom Hughes, of D&E Hughes fishing tackle shop in Stryd Penlan, Pwllheli, said: "A rise like that would hurt us. " The research was conducted by the Welsh Conservatives' economic commission.

Its chairman Professor Dylan Jones-Evans said raising business rates in the middle of a recession could be disastrous for many small firms across Wales.

He added: "I am astounded that when every penny counts for the survival of small businesses, the Welsh Assembly Government has done nothing to stop the major increase in business tax bills next year."

Aberconwy Parliamentary Candidate Guto Bebb said: "This is the biggest tax hike small businesses will have seen for five years."

A Welsh Assembly Government spokeswoman said revaluation wasn't a money generating exercise.

She said: "A revaluation exercise is being carried out in England and Wales by the independent Valuation Office Agency.

"The revaluation will not increase the business rates yield, it will simply redistribute the rate for next year on more up to date rental values."

A spokeswoman for he Valuation Office Agency said: "Revaluation does not raise extra business rates. It is designed to redistribute the same total amount amongst ratepayers."

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CAPTION(S):

Clockwise from left - Llandudno busnessmen newsagent Graham Stone at Vollams Chris Wise, of Bookwise and Johnny Taylor at Craft-Lland fear the effect of a business rates rise