Welsh Government offers reduced business rates relief for Retail, Leisure, and Hospitality in 2024-25

Welsh Government are still supporting retail, leisure and hospitality businesses via rates relief – however at a reduced amount compared to last year.

Contrary to the everlasting belief of some on social media Wrexham Council do not set business rates, but do collect them. Welsh Government sets the business rates multiplier, and have offered several relief packages for some business rate payers over the years.

Welsh Government have published their draft budget documents (as reported here). The publication covers the Welsh Government’s draft budget proposals for 2024-25 as well as setting out strategic and detailed spending plans for revenue and capital, as well as taxation and borrowing.

The documents include more detail on the announced business rates support:

The Welsh Government will cap the increase to the Non-Domestic Rates (NDR) multiplier in Wales to 5% for 2024-25. They say,  “This is lower than the 6.7% (September CPI) increase which would otherwise apply from the default inflation of the multiplier in line with CPI. It is delivered at a recurring annual cost of £18m from 2024-25 onwards. Subject to approval by the Senedd of the required legislation, the provisional multiplier for 2024-25 is 0.562.”

A second main area of support is around a rates relief discount of 75% on non-domestic rate bills for eligible occupied properties- the relief was subject to a £110,000 cap on the amount each business can claim across properties occupied by the same business in Wales.

Welsh Government have announced the £110k cap will remain, however eligible ratepayers will receive 40% relief for the duration of 2024-25.

Welsh Government said on the move, “We will also be investing an additional £78m to provide a fifth successive year of support for retail, leisure and hospitality businesses with their Non Domestic Rates bills. This builds on the almost £1bn of support provided through our retail, leisure and hospitality rates relief schemes since 2020-21.”

Other business rates updates in the budget include transitional relief for all ratepayers whose liability increased by more than £300 as a consequence of revaluation to the new list.

The transition to the new rates list sees financial support, explained in this years budget, “Eligible ratepayers are paying 33% of their additional NDR liability this year (2023-24). This will increase to 66% in 2024-25, before they reach their full liability in the third year following revaluation (2025-26). The Welsh Government is providing £113m over two years to fund this relief, supporting all areas of the tax base through a consistent and straightforward transitional scheme. The funding provided for transitional relief in 2024-25 is £37.6m.”

Welsh Government add, “In total, these measures will provide £134m of additional support for 2024-25. Combined with our fully funded permanent relief schemes, which are worth £250m to businesses and other ratepayers every year, £384m will be invested in 2024-25 on Non-Domestic Rates support. Every ratepayer will benefit from this package”

“In addition to this Non-Domestic Rates support, a fund for impacted sectors will be developed to complement the wider NDR decisions. This support will provide eligible small to medium -sized businesses in the retail, leisure and hospitality sectors, with funding to be used during 2024-25 to invest in measures to future-proof their businesses.”

You can read the full budget document here.