The Welsh government has on announced a £116 million package of non-domestic rates support to help businesses manage the impact of Wales’ next revaluation, which comes into force on 1 April 2026.
Finance secretary Mark Drakeford MS confirmed the measures in a written statement on Tuesday (3 December), setting out major structural changes to the rates system, including the first cut to the national multiplier in 15 years and the introduction of a lower retail multiplier aimed at supporting smaller shops.
The standard multiplier will fall sharply to 0.502 in 2026-27, the first reduction since 2010. At the same time, ministers will introduce a dedicated retail multiplier of 0.350, intended to “re-balance the non-domestic rates system in favour of small to medium sized retail shops”. The change is expected to reduce bills for eligible retailers by around £20m next year.
To offset the cost of the lower retail rate, a higher multiplier of 0.515 will apply to the largest properties by rateable value. Drakeford stressed this was “little more than one penny in the pound higher than the standard multiplier for 2026-27” and remained significantly below the current all-property multiplier.
Draft regulations to set the new differential multipliers will be laid before the Senedd early in the new year. Subject to approval, the new structure will take effect from April 2026, coinciding with the introduction of Wales’ three-year revaluation cycle.
Businesses facing steep hikes in their bills will also benefit from a new transitional relief scheme funded entirely by government. Any ratepayer whose liability increases by more than £300 after revaluation will see the rise phased in over two years – paying 33 per cent of the increase in 2026-27, 66 per cent in 2027-28, and the full amount from 2028-29. The scheme accounts for the full £116m support package.
Drakeford said he would lay the necessary regulations before the Senedd “as soon as possible”, with the intention for them to come into force on 31 December.
He described the measures as a “generous package of support”, adding that they sit alongside £250m in annual permanent reliefs already available to Welsh businesses.
“The Welsh government remains committed to supporting businesses to recover from recent economic challenges and to thrive moving forward,” he said.
Chancellor Rachel Reeves, in her budget last week, has unveiled permanently lower tax rates for retail, hospitality and leisure properties in England, alongside a £3.2 billion Transitional Relief scheme and an expanded Supporting Small Business scheme specifically designed to protect independent shops and pubs as they shift to the new system.