What action will the Welsh Government take to support businesses further to concerns regarding a potential rise in business rates given that inflation is rising across the world?
The Welsh Government is providing £116m of targeted non‑domestic rates support to businesses in the retail, leisure and hospitality sectors for the duration of 2022-23. This is in addition to our existing £240m package of permanent rates reliefs which provide ongoing support for businesses across Wales. As a consequence of our relief schemes, more than half of the non-domestic rates tax-base is benefitting from full relief in 2022-23, fully funded by the Welsh Government. We also have a duty to ensure stability of funding for public services, from which we all benefit, where the pressure of heightened inflation will also be felt. All the non-domestic rates revenue raised in Wales is provided to local government to support the delivery of vital local services.
In 2021-22 and 2022-23, the Welsh Government took the decision to freeze the non-domestic rates multiplier. This was to prevent increases in rates bills for ratepayers with a residual liability, after the application of any reliefs, and provide continued support to all businesses during these challenging times.
As part of the preparation for the non-domestic rates revaluation which takes effect on 1 April 2023, the Welsh Government will assess the impact of the revaluation on the tax-base.