Welsh businesses call for extension of rates support in Draft Budget

Business leaders have urged the Welsh Government to extend support on business rates ahead of the publication of its Draft Budget on Tuesday (10 December).

The Federation of Small Businesses (FSB) in Wales is calling for the government to recognise that businesses are operating in difficult conditions by continuing its support on business rates for the next financial year.

The organisation, which is Wales’s largest business group, is arguing the case for extending the Retail, Leisure and Hospitality Rates Relief, at least at the existing 40% level, warning that the sectors has suffered a prolonged period of high-costs and depressed customer spending.

Multiplier

The FSB is also calling for the multiplier used to calculate rates to be frozen for 2025/26, saying that this would provide immediate support and help businesses position themselves to invest in and expand their business in the future.

Ben Cottam, Head of Wales at the Federation of Small Businesses, said: “The economic climate remains challenging for many small businesses. The Draft Budget is a crucial opportunity for the Welsh Government to demonstrate that it has heard their concerns and is committed to supporting them through this period.

“The retail, hospitality, and leisure sectors have been particularly hard-hit. With low consumer spending and disproportionately high costs still affecting some businesses’ viability, it is critical that the rates relief for these sectors is extended, at the very least at 40%.

“These sectors are not only vital pillars of the Welsh economy but also social hubs, particularly in rural communities.

“The Welsh Government can also gear the economy towards growth by freezing the multiplier used to calculate business rates, providing immediate support and helping businesses position themselves to invest, innovate, and create jobs, ultimately spreading prosperity throughout Welsh communities.”

Covid pandemic

Temporary rate relief support for businesses in the retail hospitality and leisure sector was introduced in Wales at the start of the Covid pandemic.

In April this year, the Welsh Government cut the amount of support available to businesses from 75% to 40% on non-domestic rates bills for eligible properties.

The total amount of relief available is £110,000 across all properties occupied by the same business in Wales.