The Welsh government has published its final Budget for 2026/27 which includes support to help firms tackle rises in business rates.
A revaluation of properties takes place on 1 April and the government said it will provide £116 million in transitional relief for businesses whose liability increases by more than £300.
The standard multiplier will be reduced to 0.502, the first reduction of the multiplier in Wales since 2010.
A lower retail multiplier of 0.350 will also be introduced to “re-balance the non-domestic rates system in favour of small to medium sized retail shops. The government said this will reduce business rates bills by around £20 million.
A higher multiplier of 0.515 will apply to the properties of the largest value.
The UK government has said it will introduce additional business rates support for pubs in England. The Welsh government said “once details are available, we will be able to explore whether additional support – beyond the existing permanent relief schemes available to the pub and wider hospitality sector – is needed in Wales”.
Association of Convenience Stores (ACS) chief executive James Lowman said:
“We welcome the Welsh government’s commitment to significantly reduce the business rates multipliers for smaller retail premises.
“However, the removal of the 40% Retail, Hospitality and Leisure Relief first introduced during the Covid pandemic will mean that many stores see their rates bills increase in April, at a time when operating costs are rising and growth is hard to come by.
“Retailers tell us that higher business rates have a direct impact on investment decisions, employment opportunities and the services that are available for customers.”
Welsh Budget
The final Welsh Budget outlined how the government will spend £27.5 billon for people, public services and businesses in 2026/27.
It provides £1.2bn more than the current year and an extra £400 million since the draft Budget was published last October. Funding of £300 million for the NHS and local government was agreed as part of a Labour-Plaid Cymru deal.
It’s the Welsh Labour government’s last Budget before the Senedd election on 7 May.