What support is available to small businesses who currently do not qualify for the hospitality relief scheme?
On 3 February, I confirmed that the Welsh Government will allocate an additional £8m to provide a further year of non-domestic rates relief for food and drink hospitality properties, including pubs, restaurants and live music venues. We will make full use of additional consequential funding from the UK Government’s relief for pubs and music venues in England, together with the Welsh Government’s own funds, to extend the range of businesses supported in Wales. Eligible ratepayers will receive 15% relief in 2026-27, subject to a cap of £110,000 per business across Wales, which will ensure the available support is prioritised for independent businesses.
There are also permanent arrangements in the non-domestic rates system which will continue to benefit businesses and other ratepayers, alongside broader Welsh Government support.
Revaluation is carried out to maintain fairness in the rates system, by redistributing the total amount payable between ratepayers, to reflect relative changes in the property market. It does not raise additional revenue. Some ratepayers will see their bills increase, some will see a decrease, and many small businesses will not see any change following the 2026 revaluation, reflecting relative changes in the non-domestic property market and the continued provision of permanent reliefs.
As a consequence of the revaluation, all multipliers applicable in Wales next year will be substantially lower than the current multiplier. This will be the first reduction of the multiplier since 2010. Small and medium-sized retail shops will benefit from the lowest multiplier in the UK, worth around £20m annually. For those ratepayers which do have increased liabilities of more than £300, as a consequence of the 2026 revaluation, we will be providing £116m in transitional relief over the next two years.
The Welsh Government’s fully-funded permanent reliefs, which are currently worth £250m to businesses and other ratepayers every year, will continue. Almost half of all ratepayers, including small businesses across Wales, benefit from full rates relief as a consequence. Taking hospitality as an example, sector representatives have estimated that around two thirds of properties in Wales are likely to already attract full relief, due to their low rateable values. Almost half of pubs will continue to benefit from Small Business Rates Relief next year and over a quarter will not pay any rates at all.
Our long-established approach to relief for small businesses reflects the unique composition of the tax-base in Wales. For example, the average rateable value of properties in Wales is around £19,000, compared to £34,000 in England. In Wales, Small Business Rates Relief (SBRR) is available for up to two properties per ratepayer in each local authority, to support small business which expand into a second property. This is different from the approach in England, where a ratepayer may only claim SBRR for one property across the whole country. We, therefore, have a relatively high proportion of small properties, which qualify for relief. As a consequence, the cost of our fully-funded SBRR is equivalent to 10% of total rates revenue in Wales, compared to 4% in England.
The Welsh Government provides a range of support to small businesses beyond the non-domestic rates system. Business Wales is available to help small businesses build more resilience and develop their business practices. The service aims to improve productivity and stimulate business growth in an inclusive and sustainable way, through improved investment, export and the creation of good quality employment. The available support relates to general business advice, equality and fair work, resource efficiency, international trade, mentoring and digital exploitation. Bespoke support is also provided to help businesses access more procurement opportunities, improve marketing and sales, and access finance.