Wales government to offer 40% rates relief

Operators in Wales will continue to receive 40% rates relief for the duration of 2025-26, following the announcement of the Wales Budget on 10 December 2024.

The government says it will be investing an additional £78m to provide a sixth successive year of support for the retail, leisure and hospitality sectors.

Eligible ratepayers will continue to receive 40% non-domestic rates relief for the duration of 2025-26. As in previous years, the relief will be capped at £110,000 per business across Wales. However, it went on to say that this is a temporary relief that will not continue indefinitely.

The increase of the rates multiplier for 2025-26 will also be capped at 1%. This is lower than the 1.7% increase that would otherwise apply from the default inflation of the multiplier in line with CPI and will benefit all ratepayers, such as larger pub and bar operators, which do not already receive full relief. 

All of the consequential funding for Wales, arising from decisions relating to the multiplier announced in the UK government’s Autumn Budget, is being used for this purpose. 

Absolutely critical

"Continuing 40% business rates relief for hospitality businesses was absolutely critical," says David Chapman, executive director of UKHospitality Cymru. "Rates relief will continue to be a lifeline for many Welsh hospitality businesses, particularly as venues have to pay significantly increased employer taxes from April. Crucially, this extension avoids a situation where Welsh businesses could have been left at a competitive disadvantage to the rest of Great Britain. 

"Introducing a cap of 1% to any increase to the multiplier this year is another positive step, particularly for those larger businesses who don’t fully benefit from relief. I’m grateful that the Welsh government has used the funding available in this way. 

"These measures are recognition of the role hospitality plays serving Wales and creating places where people want to live, work and invest. I hope we can continue to work with the Welsh government to create the conditions that allow our businesses to fulfil their ambitions to drive economic growth and create more jobs."

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