The Welsh Retail Consortium (WRC) has responded to the Welsh
Government's consultation on ‘Proposals for non-domestic rates
differential multipliers' which closes today.
Retailers account for over a fifth of the business rates paid in
Wales and the business rate here is the highest in GB. The WRC's
submission:
- Praises the Welsh Government's recognition of the
disproportionate impact that business rates has on retail
- Welcomes the proposed permanent reduction in business rates
for smaller stores
- Argues that a rates reduction should be extended to all shops
in Wales
- Criticises the proposal to make medium-sized and larger shops
pay even more through a rates surtax
Instead, the WRC argues that no shops should pay a higher
business rate or surtax as a result of the reforms due to come
into effect next Spring. It comes against a backdrop of weak
shopper footfall and retail sales whilst statutory costs are
spiralling as a result of the last UK Budget.
Sara Jones, Head of the Welsh Retail Consortium,
said:
“Retailers have long borne the brunt of Wales'
outdated business rates system, so we welcome the Welsh
Government's promise to finally confront this issue. But let's be
clear: shifting the burden from one group of shops to another
isn't reform—it's a reshuffle. Business rates in Wales are
already at a 26-year high and the steepest in Great Britain. With
retailers footing a fifth of the total bill, the strain is
unsustainable. In April 2025 alone, UK retailers were hit with
£2.3 billion in extra costs as a result of the UK Budget - £115
million of that here in Wales.
“A permanent cut to rates for the smallest shops is a step in the
right direction, but real change means not leaving medium and
larger retailers behind. These stores are the heartbeat of our
high streets—drawing shopper footfall, creating jobs, and
anchoring communities. Penalising them with a surtax would be a
serious misstep. We need a system that rewards investment, not
punishes scale. No store should pay more. Wales deserves a
fairer, smarter approach—one that strengthens local economies
instead of pushing businesses to invest across the border rather
than here in Wales.”
