In a preliminary response to the Welsh Government's
Draft 2025-26 Budget, Sara Jones, Head of the
Welsh Retail Consortium, said:
On Non-Domestic Rates:
“We welcome the news that the increase in the non-domestic rates
multiplier will be capped at 1 per cent, recognising the huge
burden this outdated tax has on business. Whilst the increase is
below inflation it will, however, continue to place a significant
burden on the retail industry and requires a fundamental
overhaul. The multiplier is at a 25-year high and
remains higher in Wales than in England and Scotland, acting as a
significant barrier to investment, jobs and growth.
“Retailers have already been clobbered by the UK
Government's colossal increase in employer national insurance
contributions, disproportionately impacting the industry which
has seen sales flatline for much of the year. We will be
seeking opportunities to engage in targeted interventions when it
comes to business rates over the course of 2025, helping to
ensure we have thriving shops of all sizes and successful high
streets ensuring breadth of choice, convenience and experience
for customers.”
On the Welsh Rate of Income Tax:
“The Finance Secretary has heeded our warnings and ruled out an
increase in the Welsh rate of income tax in the coming year. Any
such uplift would have left pay packets lighter and dented
shopper spending, impacting retailers who are already facing
subdued consumer confidence, little to no growth in retail sales
and nosediving footfall”.
