Drakeford Plans Welsh Business Rates Shake-up

Wales’ finance minister Mark Drakeford has revealed new proposals to reform business rates, potentially benefitting approximately 13,000 small retail properties across Wales. 📊

Under the plans, small-to-medium sized retail shops with rateable values below £51,000 would pay a lower business rate, while properties valued above £100,000 would face a higher multiplier.

The consultation is now open until August 12, 2025, with changes expected to come into force on April 1, 2026, if approved.

“Differential multipliers provide an opportunity to permanently re-balance relative liabilities across different parts of the tax-base without changing total revenue,” said Drakeford in his statement explaining the reforms.

However, industry responses have been mixed. Sara Jones from the Welsh Retail Consortium called the proposals “something of a mixed bag” and raised concerns about higher rates for medium and larger shops, saying: “A higher business rate on these stores is the very antithesis of what’s needed to spur retailers’ investment in our town and city centres.”

UKHospitality Cymru was more critical, claiming the proposals “simply ignored” challenges faced by hospitality businesses. David Chapman, executive director, said: “These plans would see bills dramatically hiked, by the tens of thousands for many, and force businesses to reduce their hours, cut jobs and see many close for good – all of which would be a direct consequence of the Welsh Government’s actions.”

The Welsh Government noted that public sector bodies, health, and education institutions would likely be exempt from the higher multiplier rates. 🏫