The Farmers’ Union of Wales has repeated its concerns about the negative impact planned business rates increases will have on the agricultural sector in Wales and on the wider rural economy of Wales.
As a result of re-valuations based on 2015 prices, many businesses in Wales will face a change in the rates they pay after April. This will impact on many farmers who have diversified in recent years, but what is becoming clearer is the potential knock-on effect this will have on farmers who sell their livestock at markets in Wales.
“We’ve heard reports from livestock markets that their rates are about to rise by nearly 100% and when you try and work out how they will pay that bill it is quite clear. The money will come from increased commission in the marts which will therefore hit all farmers,” said Brian Thomas, Deputy President of the FUW.
“We appreciate that the Welsh Government has made funding available, which will be distributed by local authorities, in addition to the Welsh Government's £10m transitional relief scheme and its Small Business Rates Relief Scheme worth £100m.
“However, there’s no way we can realistically expect somewhere like a livestock market to absorb such costs. They have no other clear source of income than commission payments, so this punitive tax will impact every farmer that sells stock through those markets,” Mr Thomas added.
The FUW will continue to fight to ensure that tax regimes do not hit rural Wales more widely than is strictly necessary.