Local Government Minister Brian Gibbons has revealed there are still no “definitive proposals” to deal with the impact of rates revaluation

The Assembly Government has admitted it still does not have plans in place to help businesses with rising business rates.

Following exchanges with the Welsh Conservatives in the National Assembly today, Local Government Minister Brian Gibbons has revealed there are still no “definitive proposals” to deal with the impact of rates revaluation, which is due to come into effect from April.

Opposition leader Nick Bourne described the admission as “hopeless” and demanded leadership from ministers.

Last week Welsh Conservatives revealed that the UK Government issued plans to raise the business rate relief threshold on 30 September. So far the Assembly Government has failed to bring forward similar proposals in Wales.

Welsh Conservatives have repeatedly called on ministers to raise the threshold, delay revaluation until at least April 2011, and introduce a scheme to scrap or reduce rates for up to 90,000 businesses.

According to the Assembly Government’s own figures, as many as 40,000 Welsh businesses could see their rates rise next spring as a result of revaluation.

Commenting on the latest ministerial statement, Nick Bourne AM said: “The Assembly Government’s response to the plight of businesses across Wales as a result of rising rates is nothing short of hopeless.

“The UK Government took steps to offset the impact of revaluation in England weeks ago yet by their own admission ministers in Cardiff still have no plans on the table for Wales.

“The Assembly Government should be taking action now to help firms across Wales during the recession.

“Revaluation should not have come as a surprise given that it happens every five years.

“How much longer have Welsh businesses got to wait for this government to help them?

“They need to know now what support is on offer so they can plan budgets for the next financial year.

“The longer ministers delay, the greater the prospect of businesses laying off staff or closing down altogether.”

Welsh Conservative Leader - Nick Bourne (right)

There are regional variations in Assembly Government help for businesses during the recession say the Assembly Conservative group.

Figures released to Opposition leader Nick Bourne following a Freedom of Information request reveals that not one penny has been paid out under the ProAct scheme to help businesses in the Conwy local authority area. But in Neath Port Talbot firms have received £2.3mn under the employee training and wage subsidy initiative.

Nick Bourne said the figures undermined Assembly Government rhetoric about supporting businesses and communities across Wales.

He added that they also highlighted the failure of Plaid Cymru, which holds the Assembly seat of Aberconwy and the economic portfolio in the Assembly Government, to lobby on behalf of local businesses.

According to official figures the unemployment rate in the Conwy Parliamentary constituency has risen from 5.3% to 8.1% between September 2008 and 2009.

An update paper for the eighth economic summit last month also reveals that of the applications for ProAct money by sector, 18 grants were awarded to hairdressers, nine times more than to the aerospace sector.

Commenting on the figures, Opposition leader Nick Bourne AM said: “The wide regional variations in ProAct funding are a matter of concern.

“We are, of course, pleased to see so many businesses in south west Wales benefiting from the scheme. But these figures expose the failure of Plaid Cymru to lobby on behalf of local businesses in Conwy who have yet to receive a penny under ProAct.

“While we have welcomed schemes like ProAct it is clear from the fact that unemployment is now at a 16-year high that they are not working to anywhere near the level we were promised.

“Wide variations in ProAct funding, coupled with the impact of business rates revaluation, means small firms in some parts of Wales will continue to be hit hard by Labour’s recession.

“We were promised Assembly Government help for businesses in every part of Wales. The evidence suggests this is far from the truth.”