One of the first calls for support I received after my election was from traders and concerned residents in Penmaenmawr. Since early April numerous businesses have closed in the village with other businesses increasingly worried that the loss of a number of independent traders could easily have a dangerous knock-on effect on the surviving traders. The main concern expressed by all the traders whom I met was the extraordinary increase in their business rates valuation.

Consultations with local businesses (a slow process due to Data Protection Legislation) found that the increase in business rates vary from two cases where the increase is 35% and 36% to eight cases where the increase is in the region of 50% (most are at 50.6%). There are then two outliners where the increase has been 111% and 83% respectively. All these businesses are in the central Penmaenmawr retail area and all the businesses will, as a result of the new rateable value, face a real increase in their payments despite the change in the multiplier from 48.9p in the pound to the current 40.9p. When I recall the numerous occasions when Plaid Cymru supporters indicated that the changes in business rates would be ‘neutral’ (as many winners as losers was the claim if I remember correctly)it is difficult to see how this can be the case in view of the evidence collected from 14 businesses in Penmaenmawr.

Why the uniform increase in the context of Penmaenmawr? Is it a direct result of the substantial investment that has been made in the retail area over recent years? It seems almost perverse that public money has been spent by several agencies in order to re-vitalise the commercial heart of the village and their investment is now being undermined through the decisions taken by another government agency to increase rateable values by a margin which bears no relationship to the commercial realities of operating a business in the village.

It should also be noted that two businesses within a walking distance of the centre of the village have suffered rateable value increases of 121% and 309%! Whilst not in the central retail area these businesses have also contributed to the renewal of the commercial potential of the area and there is a real question as to how such significant increases can be justified.

I’m aware that a number of businesses are appealing their valuations due to the commercial impact of such above inflation changes on their businesses. In addition to supporting fully these individual appeals I have written to the Valuation Office requesting an explanation as to why Penmaenmawr has been subject to such huge increases. I have also offered to take officers from the Valuation Office on a fact finding tour of businesses in the village to show them that neither rental charges or the level of trade have increased in any way which could conceivably justify the massive increases in rates identified.

On a final note – if readers of this blog are aware of similar circumstances where all the businesses in an area are losers from the rates revaluation then get in touch. I would be delighted to take issue with the Valuation Office with respect to any area where the vast majority of traders are losers and not winners from the revaluation process.

Guto