Business rate cut for small shops – but tax rise coming for larger stores

Business Rate Cut for Small Shops in Wales

The Senedd has approved plans to reduce business rates for around 13,000 smaller high-street shops in Wales while increasing rates for larger, higher-value properties. Finance Secretary Mark Drakeford introduced regulations to modify the multipliers for business rates, officially called non-domestic rates, effective from April 2026.

New Rate Multipliers

The Welsh Government will apply a lower multiplier for smaller shops, kiosks, pharmacies, and post offices with a rateable value below £51,000. This measure aims to ease the financial burden on smaller retail businesses.

Higher Rates for Bigger Properties

To balance the revenue loss from supporting smaller businesses, a higher multiplier will affect approximately 3,200 larger properties with rateable values exceeding £100,000.

Exemptions and Limitations

The higher multiplier will not affect properties used by the public sector, including hospitals, surgeries, schools, colleges, museums, universities, courts, and police stations.
However, a consultation document cautioned that excluding broader property types, such as office buildings occupied by public services, would not be feasible.

Multiplier Values and Revaluation

The specific values for the retail and higher multipliers will be determined by ministers through separate regulations, considering a non-domestic rates revaluation that is still pending.

Research on Business Rates

Research conducted earlier this year by Aberystwyth Town Council found that the cost per square metre in Aberystwyth was almost three times higher than on the main shopping street in Swansea.

Author's summary: Wales plans to reduce business rates for small shops while increasing them for larger properties, balancing support for small businesses with revenue needs, amid regional cost disparities.

Cambrian News — 2025-11-06