Written question WQ97990

Many businesses in the hospitality and leisure sectors benefit from our permanent non-domestic rates reliefs, currently worth £250m annually and fully funded by the Welsh Government, which continue. Almost half of all ratepayers, including small businesses across Wales, benefit from full relief. Sector representatives have estimated that around two thirds of hospitality properties in Wales attract full relief, due to their low rateable values.

The Welsh Government is also providing transitional relief to all ratepayers whose liabilities will increase by more than £300, as a consequence of the 2026 revaluation. £116m has been allocated over the next two years to fully fund this relief, supporting all areas of the tax-base in a consistent and straightforward manner.

Ratepayers for properties which do not attract full relief will benefit from a standard multiplier for 2026-27 which is 12% lower than the current multiplier, as a consequence of the 2026 revaluation. This follows substantial allocations of the Welsh Government’s budget to cap the multiplier throughout this Senedd term. Our decisions to freeze or limit inflationary growth in the multiplier, from 2021-22 to 2025-26, have a recurring cost which has already accumulated to over £500m and will continue to grow in future years.