A new transitional relief scheme will help businesses manage rates changes from next April.
The Welsh Government has announced an additional £116 million of support, as business rates in Wales will be updated to reflect current property values.
From 1 April 2026, the revaluation will mean many will see their bills fall, while others will see them go up.
Any business whose bill increases by more than £300 next year because of the revaluation will have the rise phased in gradually over two years, rather than paying the full increase immediately.
For the first time since 2010, the multiplier will be reduced for all ratepayers. Small and medium-sized retail shops will benefit from a new lower rate, cutting their bills by around £20 million.
The Welsh Government already provides £250 million each year in permanent business rates relief. Around two thirds of all properties in Wales either pay no rates or receive some form of relief.
Cabinet Secretary for Finance and Welsh Language Mark Drakeford said:
“We know businesses have faced significant economic challenges in recent years. This support package will help them manage the transition to updated rates bills while we deliver on our commitment to a fairer rates system.
“By introducing more frequent revaluations and a lower rate for small shops, we’re making sure the business rates system reflects today’s economy and supports the businesses that are the backbone of our high streets and communities.”
“Today’s announcement is an important step forward for independent retailers across Wales. FSB Wales has long argued for permanently lower rates for smaller businesses and these measures will limit the impact for those facing big bill increases.
“FSB Wales welcomes this targeted relief, especially the lower rate for independent retailers, but we are very disappointed that leisure and hospitality businesses, which have been among the hardest hit in recent years, have not been explicitly mentioned and given similar dedicated support.”
FSB Wales is calling on Welsh Government to use the final budget in January 2026 to confirm continued or enhanced rates relief for the hospitality and leisure sector, which has faced years of rising energy bills, staffing shortages and fragile consumer confidence.
1 Comment
My pub has gone from £27000 to £44200 – and not even the 38p multiplier! It will kill us.