£116m business rates support package announced

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."