BUSINESS RATES U-TURN WELCOME BUT DOESN'T GO FAR ENOUGH- WILLIAMS

9.47.40am BST (GMT +0100) Wed 1st Apr 2009

Roger Williams, MP for Brecon and Radnorshire and Liberal Democrat Shadow Secretary of State for Wales, has welcomed the announcement by Alistair Darling, Chancellor of the Exchequer, that the proposed 5% increase in business rates will be staggered over three years.

Mr Williams said:

"While this announcement is welcome news to many businesses I don't believe that the increase should have been introduced in the first place.

"The 4.9% increase in business rates was based on the Retail Price Index (RPI) figure for September. That figure is now 0% and to continue with the proposed rate increase, even if it will now be staggered over three years, is madness.

"I have raised this issue with ministers in the Treasury and at the Welsh Office on a number of occasions and called on them to scrap this tax hike. I am pleased that the rates will only increase by 2% this year but, given the hardship faced by so many businesses, I don't think the Chancellor has gone far enough."