A new transitional relief scheme will help businesses manage
rates changes from next April.
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 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."
Notes to editors
- The 2026 revaluation is the second delivered this Senedd term
and the first on the new three-yearly cycle introduced as part of
non-domestic rates reforms
- The standard multiplier will be reduced to 0.502 in 2026-27
- A new retail multiplier of 0.350 will apply to eligible small
and medium-sized retail properties
- A higher multiplier of 0.515 will apply to the largest
properties by value (little more than one penny in the pound
higher than the standard rate)
- Regulations to set the new differential multipliers will be
brought forward in early 2026
- Transitional relief will be structured as follows: eligible
ratepayers will pay 33% of their additional liability in 2026-27,
66% in 2027-28, and the full amount from 2028-29
- The draft Non-Domestic Rating (Chargeable Amounts) (Wales)
Regulations 2025 will be laid before the Senedd as soon as
possible to provide for transitional relief
- Revaluation redistributes the total amount payable between
ratepayers to reflect relative changes in the property market. It
does not raise additional revenue
- Transitional relief is fully funded by the Welsh Government
with no impact on local authority funding
