More consistency and transparency needed – Welsh Businesses give their views on Business Rates in Wales

The Assembly’s Economy, Infrastructure and Skills Committee spends a lot of time talking to people in the world of Welsh business. Business rates is one of the issues that arises frequently and provokes strong reactions.

It was also an issue that cropped up heavily in our summer consultation when we asked people what work the Committee should be prioritising. For that reason, the Committee decided to hold an early one-day session looking at business rates in Wales. The event was held on 5 October, just days after details of a revaluation of business rates in Wales was published.

A Business breakfast to hear views from across Wales

The Committee invited a cross section of business representatives to a breakfast event at the World of Boats in Cardiff Bay on Wednesday to hear their views on the subject.

To ensure we got the full picture from businesses Wales-wide, we filmed interviews with businesses across the country, so that we could show attendees a short video, summarising some of the key issues to help stimulate discussion.

Businesses spoke about the difficulties they experienced and suggested ways to improve the system for SMEs. Here’s some of the issues raised in the video:

It would have helped if we’d had that little bit of relief especially in the six months when we weren’t trading, so there was no money coming in only money going out and yet we had to still pay business rates…

Katia Fatiadou, Quantum Coffee Roasters Ltd, Cardiff Bay

When we pay business rates we don’t get anything back in return, absolutely nothing…so business rates are a cost to the businesses and there’s no return whatsoever.

Robert Griffiths, Ruggers Carpets, Merthyr Tydfil

A successful business rates policy would be based on a calculation of the company’s financial and profitability rather than the rateable value of the premises that they’re currently working out of or the premises that they potentially want to move in to.

Joshua Weaver, We are Promotional Products, Welshpool

At the event the biggest discussion points were how rates are calculated, what the money is spent on, whether and how rates could be reduced to promote economic development, as well as specific issues relating to the cost of investment in equipment (e.g. by major industries like steelworks), high street vs. out of town retail, and how holiday rental cottages should be assessed.

What happened after breakfast?

Later that morning, the committee held a formal meeting in the Senedd, taking evidence firstly from a panel of experts, and then from the Cabinet Secretary for Finance, Mark Drakeford, who is responsible for business rates in Wales. The session, which can be seen on Senedd.tv highlighted the need for greater consistency and transparency when it comes to business rates, a better appeals system, and clarity on any changes that may happen in the future.

Members made a number of references to what they had heard, from businesses at the breakfast event and from the video interviews, during the Ministerial scrutiny session.

Next steps

At the breakfast session, some participants indicated they might have further information they wished to share with the committee. They have been invited to share that in writing.

Once the Committee has considered any additional information, it will discuss its conclusions before writing to the Cabinet Secretary for Finance, with recommendations for improving the current regime.

Keep in touch

The Committee was established to hold the Welsh Government to account on issues such as economic development; transport; infrastructure; employment; skills; and research and development, including technology and science.

Keep up with the work of the Committee by following us on Twitter @SeneddEIS.

Chair’s blog: Inquiry into New Psychoactive Substances

I’m David Rees (@DavidReesAM), Chair of the Health and Social Care Committee.

In September 2014 the Committee started looking into the issue of new psychoactive substances (“NPS”). We have now finished our inquiry and have written a report (PDF, 1MB) making 14 recommendations to the Welsh Government. A shorter summary (PDF, 252KB) is also available.

What are New Psychoactive Substances (NPS)?

NPS are commonly marketed as safer and legal alternatives to illegal drugs, often made in laboratories and sold via the internet or in so-called “head shops” that exist on the high street. They are often referred to as “legal highs”. This marketing is misleading – their side effects can be as serious as those caused by illegal drugs, and they can be as addictive too. Often, they also contain traces of substances that are against the law to sell and take.

Why did we hold this inquiry?

We decided to look into this issue because the use of NPS has grown in Wales, and elsewhere, in recent years. In 2013, 60 deaths in England and Wales involved NPS, 15 per cent higher than the previous year. Members were concerned about the health and social harms caused by NPS, and wanted to shine a light on the steps that need to be taken to allow people to make more informed decisions about their use of NPS.

How did we gather people’s views for this inquiry?

We used a number of different ways to ask people what they think about NPS, including:

• asking the public to fill in a survey, which 1072 people responded to from across Wales;
• inviting representatives from key organisations to speak with Members in official meetings at the Senedd in Cardiff Bay;
• holding focus groups in Merthyr Tydfil and Wrexham to hear directly from frontline staff, and Committee members visited the LOTS project, Forsythia Youth Club, DrugAid and the headquarters of DAN 24/7, Wales’ national substance misuse helpline.

We wrote a blogpost about these visits and have also have published pictures from Wrexham and Merthyr alongside some short videos so you can see what the Committee has been doing:

The Committee also used  storify to keep people updated on the inquiry’s progress.

What did people tell the Committee and what have we done about it?

What the Committee was told

• More needs to be done to increase public awareness of the harms caused by using NPS;
• the term “legal highs” is really unhelpful. It suggests that using these substances is a safe and legal thing to do. In reality, they are often really harmful and contain illegal substances;
• the UK Government, which is responsible for drugs policy, should ban the supply of NPS, making “head shops” and market stalls that sell NPS illegal;
• those using NPS should not be given a criminal record – that could make things even worse for users who are trying to get their lives back on track;
• not enough is known about how many people are taking NPS and what harms they can cause.

What we said in our report

• The current drugs education programme in schools should be reviewed urgently to make it better and more consistent across Wales, and to make sure it is delivered by people who are suitably trained and qualified;
• a national training programme on NPS should be developed for all staff providing public services (e.g. doctors, nurses, police, social workers, prison officers etc);
• the Welsh Government’s 2015 public awareness campaign on NPS should include targeted information for young people and emphasise that legal does not mean safe;
• those working in this field, including the media, should stop using the term “legal highs” as it is very misleading;
• the Welsh Government should encourage the UK Government to move as quickly as possible to implement the suggested ban on the supply of NPS.

To read all 14 of our recommendations please see our report (PDF, 1MB) or the shorter summary (PDF, 252KB) document.

What did the UK and Welsh Governments think about our report?

The Welsh Government’s response (PDF, 295KB) to our report accepts fully all of our recommendations. The UK Government Home Office (PDF, 69KB) has also written to the Committee to note that it welcomes our work and supports each of our 14 recommendations.

What happens next?

Our report will be debated by all Assembly Members on 13 May in the Siambr, the Assembly’s main debating chamber. This will be an opportunity to draw attention to this important topic, and to put questions to the Welsh Government’s Health Minister about what the Welsh Government will do to deliver our recommendations.

I would like to thank everyone who took the time to share their experiences of NPS and their views about what needs to be done to raise public awareness of their harms. Although the Committee itself can only recommend changes rather than being able to make the changes itself, we will continue to put pressure on the Welsh Government and others to deliver the actions set out in our report.

How to get involved and keep up-to date with our work

• Follow @seneddhealth for all the latest information.
• Visit the Committee’s homepage at http://www.assembly.wales/seneddhealth for information on current inquiries and Bills
• NPS inquiry homepage: keep up-to date with the progress of the inquiry
• You can find more information about NPS, including how you can get help and support if you have used them, on the DAN 24/7 website.