£116m support package announced as business rates set for major overhaul
£116m support package announced as business rates set for major overhaul
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The Welsh Government has announced a £116 million support package designed to cushion businesses from changes to their rates bills when the next national revaluation comes into force on 1 April 2026.
The update, which will reflect current property values, is expected to cut bills for many firms across Wales, while others will face increases.
Ministers say the new funding package is aimed at ensuring companies have time to adjust.
A central feature of the plan is a transitional relief scheme that will phase in larger increases.
Any business whose bill rises by more than £300 next year because of the revaluation will see the change introduced gradually over two years, rather than being hit with the full increase immediately.
The government is also reducing the multiplier for all ratepayers, its first reduction since 2010.
In a move intended to support high streets, small and medium-sized retail shops will benefit from a new, lower rate, which is forecast to cut their collective bills by around £20 million.
The latest support comes on top of the £250 million the Welsh Government provides annually in permanent business rates relief.
Officials say around two-thirds of all properties in Wales either pay no rates at all 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.”
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.
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