Bates lobbies First Minister for business rate reduction in rural areas (Montgomeryshire Liberal Democrats)

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Montgomeryshire Liberal Democrats <montlibdems@gmail.com>

Bates lobbies First Minister for business rate reduction in rural areas

December 17, 2008 12:00 AM

After discovering that farm incomes in Wales have fallen from £142.2 million in 2005 to an estimated £46.4million in 2007, Montgomeryshire AM Mick Bates has written to the First Minister, calling for a reduction in business rates, to support rural industries through the current economic crisis.

Commenting Mick stated:

"Over the last few weeks I have met many local business people who are deeply concerned about the rural economy in Montgomeryshire and throughout Wales. Their concerns are based upon the reduction in their own business activity, the prospect of reduced farm payments under CAP reforms and the lack of investment in business in Mid Wales.

"Farm incomes in Wales have dropped dramatically, from £142.2 million in 2005 to an estimated £46.4million in 2007. In comparison, as discovered by my colleague Roger Williams MP, the total income from farming in England went up from £1.415bn to £1.63bn between 2005 and 2007.

"This shocking fall in farm incomes in Wales leaves me deeply concerned about the future prosperity of our rural areas. It is crucial that the Assembly Government offers as much support to help rural industries through this difficult economic climate.

"I have written to the Minister for Finance, Andrew Davies, calling for more support for rural areas, in recognition of the extra cost of accessing services faced by many rural local authorities. I was disappointed to be told that there are no Assembly Government plans to introduce a separate rural deprivation grant.

"It is clear that the Labour-Plaid Government has a complete lack of understanding of the challenges that face rural Wales in delivering local services, which often cost two to three times more than in urban areas.

"With such a disperse population, poor infrastructure and against a backdrop of rising fuel and energy costs, the delivery of services in rural areas is an increasing challenge. I have now written to the First Minister, urging him to support a reduction in business rates, which would provide a tremendous boost to many local businesses in Mid Wales who are struggling at this difficult time."

Notes:

Total Income from Farming (TIFF) in Wales was £142.2 million in 2005, £51.8 million in 2006 and £46.4million in 2007 (provisional).

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