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Small business leaders in Wales have called for any extra money coming to Wales following business rate cuts in England to be passed directly to high street traders.

New UK Prime Minister Andy Burnham has announced pubs, clubs, and live music venues in England will receive a 20% cut in business rates from April.

However, this will not affect Wales, where business rates decisions are devolved to the Welsh Government.

However, spending on the English policy will automatically generate extra funding for the Welsh Treasury through the Treasury’s funding mechanism known as the Barnett Formula.

Small business campaigners say ministers in Cardiff Bay must ring-fence that money to support struggling high streets across Wales.

John Hurst, chair of the Federation of Small Businesses (FSB) Wales, said: “Additional relief for small businesses in England is a welcome recognition of the sustained cost pressures that small firms have faced in recent years.

“Any extra funding coming to Wales as a result of this policy should be used to ease the pressure on small businesses here too. That should include giving hospitality and leisure businesses more support through the small retail multiplier, and raising the point at which businesses start paying rates.”

Mr Hurst described business rates as “one of the most important tools the Welsh Government has to support small firms” and added: “We welcome its early engagement on reform, and want to see that lead to practical action that helps keep town centres vibrant, protects local jobs and strengthens communities across Wales.”