Plans to reform Business rates to support Welsh high street retailers revealed
Plans to reform Business rates to support Welsh high street retailers revealed
Small retailers across Wales could soon see a reduction in business rates under new proposals announced by the Welsh Government, aimed at levelling the playing field with online competitors.
A 12-week public consultation has opened to explore changes to the business rates system, which could see approximately 13,000 retail properties benefit from lower costs. The proposals suggest cutting rates for retail units with a rateable value of less than £51,000—offering a potential lifeline to high street businesses battling rising costs and digital competition.
To offset the reduction, the Welsh Government is considering a modest increase in rates for properties with a rateable value over £100,000. However, essential public buildings such as hospitals and schools would be exempt from the changes.
If approved, the revised rates would come into effect from 1 April 2026, with specific figures to be finalised during the 2026–27 budget planning cycle.
Finance Secretary Mark Drakeford said the move is designed to “re-balance the rates system in favour of retail shops” and bolster the viability of town centre businesses.
“As part of our shared strategic vision for retail and our retail action plan, we’re taking meaningful steps to strengthen our local economies and create more vibrant high streets across Wales,” Drakeford added.
The consultation, which opened on 20 May, will remain live until 12 August 2025, giving stakeholders across the business and public sectors the opportunity to provide input.
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