What economic assessment has the Minister made of the cutting of business rates relief from 75 per cent to 40 per cent in the Welsh Government's draft budget?
The Welsh Government is investing an additional £78m to provide a fifth successive year of temporary support through rate relief for retail, leisure and hospitality businesses with their non-domestic rates bills in 2024-25. This builds on the almost £1bn of support provided since 2020-21. The decision to provide further temporary relief is intended to support businesses in these sectors to continue their recovery from the impact of economic challenges they have faced over recent years.
Non-domestic rates liability is a predictable contribution to the funding of local services, which businesses plan for. This temporary relief would not exist by default and was never intended to continue indefinitely. The 23/24 relief comes to an end at the end of this financial year, and businesses would have been planning on that basis. The impact of providing further relief at any level will, therefore, be positive for businesses in reducing this routine cost.
We are providing this further relief in the context of the toughest financial situation we have faced since devolution. The Draft Budget for 2024-25 is worth £1.3bn less in real terms than when it was set in 2021. We have had to make some very difficult decisions to refocus funding towards core, frontline public services which we all rely on.