The Welsh Government has announced a 12-week consultation, which could benefit around 13,000 retail properties across Wales.
It would cut rates for retail shops with rateable values less than £51,000, to help them compete with online retailers. Larger properties with rateable values over £100,000 could be charged slightly more, but some public buildings like hospitals and schools would be protected.
If approved, the changes would start on 1st April next year. The exact rates will be set during the Welsh Government’s budget planning for 2026-27.
Finance Secretary, Mark Drakeford, said: “This proposal would help re-balance the rates system in favour of retail shops, supporting the ongoing viability of the sector which faces unique challenges from online competition.”
“As part of our shared strategic vision for retail and retail action plan, we’re taking meaningful steps to strengthen our local economies and create more vibrant high streets across Wales.”
Meanwhile the Welsh Liberal Democrats have said that the planned changes do not go far enough.
Welsh Liberal Democrat Leader Jane Dodds MS said: “Business rates punitively punish our small businesses in Wales, while rewarding large corporations.
“We cannot simply tinker around the edges, and Labour’s proposals simply don’t address the scale of the problem.
“The Welsh Liberal Democrats will be going into next year’s Senedd elections with a clear commitment to replace the outdated business rates system.”
The consultation runs from 20th May to 12th August 2025.
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