NEW Welsh tax rates on large office developments and buildings could deter investors, South Wales East AM Mark Reckless has claimed.

The new Land Transaction Tax, which has replaced Stamp Duty in Wales, includes a six per cent rate on non-residential land or property worth more than £1 million. In England the highest rate is five per cent.

Speaking in the Assembly this week Mr Reckless said he was concerned this would "deter investment by making Wales more expensive as investors target English regional cities instead of Cardiff, cutting the flow of capital into the Cardiff market."

Referring to an article by property expert Ross Griffin, he added: "He concludes that this will limit future growth of the Cardiff office market and future employment growth in the city. How is this going to help my constituents and others who look to work in Cardiff?"

Finance secretary Mark Drakeford replied he had met with companies and individuals to discuss concerns and would take evidence into account in making decisions on tax.