Cardiff's Small Businesses save more than £800,000 under new scheme

June 20, 2007 12:37 PM

UK Money - notes and coinsA new scheme has given small businesses in Cardiff a boost of more than £800,000.

The Small Business Rate Relief Scheme was initially set up on April 1 this year and since then has had a very positive impact, offering rate reductions to small businesses across Wales.

The National Assembly initially implemented a Rural Relief Scheme designed to lessen the impact of business rates on rural businesses and post offices. In April the National Assembly changed this to a Small Business Rate Relief Scheme aimed at making it a fairer initiative and targeting small businesses in all areas throughout Wales, not just rural.

Under the new initiative small businesses with a rateable value of £2000 or under are eligible to receive a 50% reduction on their bill, and businesses that have a rateable value of between £2001 and £5000, are eligible for a 25% reduction.

Currently over 2000 small businesses within Cardiff are getting a reduction on their bill and are receiving nearly £800 000 more in relief money than under the old scheme. Prior to its introduction only 50 businesses were in receipt of Rural Rate Relief. Presently 274 small businesses in Riverside are benefiting from the fund together with 144 in Plasnewydd, 140 in Cathays and 127 around the City Centre, with many more areas showing small businesses taking part in the scheme.

Lib Dem Executive Member for Economic Development and Finance, Councillor Mark Stephens said, "I am delighted that the National Assembly took on board the comments of Cardiff and other councils, and expanded this scheme to urban small businesses.

"In the past, the high business rates have made it difficult for small businesses to compete with the large stores. The new Small Business Rate Relief Scheme is having a positive effect on local businesses and will hopefully help them to thrive."

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