Wales to provide £460m in rates support for businesses

13 December 2022 by
Wales to provide £460m in rates support for businesses

A package of support worth more than £460m over the next two financial years will be announced in the Welsh Government's upcoming draft Budget.

The package is intended to support businesses across Wales struggling with the impacts of high inflation and surging energy costs and will operate in addition to permanent relief schemes.

The non-domestic rates multiplier has been frozen for 2023-24, at a cost of more than £200m over the next two years. This ensures there will be no inflationary increase in the amount of rates businesses and other ratepayers are paying.

A further £113m will be provided over the next two years to provide transitional relief for all ratepayers whose bills increase by more than £300 following the UK-wide revaluation exercise, which will take effect on 1 April 2023.

Another £140m will support businesses in the retail, leisure and hospitality sectors. Eligible ratepayers will receive 75% non-domestic rates relief for 2023‑24, a rise from the 50% relief provided in 2022-23.

Like the similar scheme announced by the UK Government, the Welsh Government's retail, leisure and hospitality rates relief scheme will be capped at £110,000 per business across Wales.

Minister for finance and local government, Rebecca Evans, said: "We know that businesses are feeling the pressure of spiralling energy costs and rising inflation, while they are still recovering from the impacts of the pandemic.

"We want businesses to know now that we will continue to apply substantial discounts to their rates bills, and that this package of support will help businesses to thrive in the hard times we know they are facing."

Minister for economy, Vaughan Gething, added: "The additional support we have announced today will help us provide more certainty for businesses despite rising costs. I remain fully committed to moving the economy forward by supporting businesses to grow and thrive."

Subject to the approval of the Senedd, the Regulations will come into force on 31 December 2022 and provide for transitional relief from 1 April 2023.

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