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Business Rates
Is this devolved to Wales?
Devolved
The necessary powers are not reserved to the UK Parliament in Schedule 7A of the Government of Wales Act 2006.
Shared Powers
Insert a specific explanation of the powers situation for this issue here.
Not Devolved
The powers over this are reserved to the UK Parliament in Schedule 7A of the Government of Wales Act 2006 (Specific Section/Number/Clause).
Business rates (officially called non-domestic rates) are the equivalent of council tax for business/commercial premises.
Business rates are calculated using a multiplier of the rateable value of a property used for business.
For example, the multiplier for retail businesses with a rateable value of under £51,000 is 0.350. So if a business had a rateable value of £30,000, its business rates bill (as of April 2026) would be £10,500 (30,000 x 0.350)1.
Businesses with very low rateable values may be exempt from business rates altogether (rateable value of under £6,000), or have a large discount (£6,000 – 12,000).
There have been calls for a wider reform of business rates in Wales. As a step towards this, on 15th September 2026, the Welsh Government announced a 30% cut to business rates for the hospitality, personal fitness and leisure sectors.
Business rates are used to part-fund local government services in the same way as council tax. They are redistributed by the Welsh Government as part of the yearly local government settlement.
Exemptions and discounts (“rates relief”) in Wales are also less generous than in England, where all businesses with a rateable value of under £12,000 are exempt, and rates relief is available for up to £15,0002.
There have been calls for targeted support to sectors and certain types of business which have struggled in recent years, such as pubs and restaurants. The previous Welsh Government introduced lower, standard and higher multipliers applying to certain types of business.
There have also been calls for local authorities to be able to keep more of what they raise in business rates.
As of March 2025, there were 126,120 rateable properties in Wales3. The Finance Minister has told the Senedd that an estimated 20,000 properties would benefit from announced changes (more below).
Historic non-domestic rates multiplier, Wales (source)
The higher the number, the higher the business rates bill. The figure for 2026-27 is the standard multiplier (the retail multiplier is lower and there’s also a higher rate).
Total value of mandatory non domestic rates reliefs, all local authorities, Wales (source)
Figures rounded to one decimal place.
Costs & Economic Impact
Business Rates-
Redistributed to Welsh local authorities
-
345 per head
Who has raised this at the Senedd?
Elin Jones MS
Finance Minister
Nick Carter MS
Backbencher
Cai Parry-Jones MS
Shadow Finance Minister
Art Wright MS
Backbencher
Huw Thomas MS
Backbencher
Sam Rowlands MS
Chair: Finance
Elin Jones MS
Finance Minister
Nick Carter MS
Backbencher
Cai Parry-Jones MS
Shadow Finance Minister
Art Wright MS
Backbencher
Huw Thomas MS
Backbencher
Sam Rowlands MS
Chair: Finance
What are the party positions on this?
- Supports reform
- Opposed
- Neutral/No Opinion
Only a few Plaid Cymru backbenchers have spoken on this, and support the measures proposed by the Welsh Government. There’s support, in principle, for targeting certain types of business with higher rates – such as data centres.
- Supports
- Sceptical
- Neutral/No Opinion
Reform UK want lower tax rates across the board, expressing some scepticism that asking bigger businesses to pay more to cover the costs of the 30% cut is a wise choice.
- Supports reform
- Opposed
- Neutral/No Opinion
Labour support the 30% cut to the hospitality sector in principle, but warn on unintended consequences. They support a wider reform of business rates.
- Supports reform
- Opposed
- Neutral/No Opinion
The Conservatives support cuts to business rates, but also support reform of the business rates system which would push councils to support economic growth.
- Supports
- Opposed
- Neutral/No Opinion
Jane Dodds hasn’t said anything on this specifically.
Who is responsible?
Elin Jones MS
Finance Minister
What have ministers said?
What's being done about this?
Plaid Cymru included a commitment to consider reforms of business rates in its 2026 Senedd election manifesto:
“to level the playing field for businesses on our high streets, and redress the existing imbalance that advantages out-of- town hopping over hospitality, leisure and retail in our town centres”.
As noted, on 15th September 2026, the Welsh Government announced a permanent 30% cut to business rates for the hospitality, food & drink, gym and live entertainment sectors4. This doubles existing reliefs to the sector.
The Finance Minister also said she was seeking cross-party consensus on wider reforms to business rates.
Plaid Cymru also committed to local councils retaining more of the business rates raised from onshore solar and wind energy projects.
New regulations are set to be introduced before the end of 2026.
Wider reforms – or replacing business rates altogether – would likely need a new law.Â
The 30% cut to business rates as outlined will come into effect in the 2027-28 financial year (from April 2027).
There are no timescales yet for a full review/reform of business rates.
What have the Senedd's Committees said?
Nothing has been discussed yet.
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Relevant Votes
Nothing to see yet.
Further Reading
- Business Wales (11th August 2026). “Business Rates in Wales“
- UK Government. “Small business rate relief”
- Valuation Office Agency (19th June 2025). “Non-domestic rating: stock of properties statistical commentary“
- Welsh Government (15th September 2026). “30% business rates cut for high street hospitality and leisure venues“
