Business rate cut for small shops – but tax rise coming for larger stores

Business Rate Cuts for Small Shops in Wales

The Senedd has approved plans to reduce business rates for approximately 13,000 smaller high-street shops across Wales, while increasing charges for larger, higher-value properties.

New Regulations on Business Rates from April 2026

Finance Secretary Mark Drakeford introduced regulations to adjust the multipliers for business rates—officially called non-domestic rates—for the first time starting April 2026. A lower multiplier will apply to smaller shops, kiosks, pharmacies, and post offices with a rateable value under £51,000.

Higher Rates for Larger Properties

To balance the revenue loss from smaller “bricks-and-mortar” shops, a higher multiplier will be charged on about 3,200 larger properties with rateable values exceeding £100,000. However, this increase will not affect public sector properties such as hospitals, schools, museums, universities, courts, and police stations.

Exceptions and Limitations

“It would not be possible to exclude more generic property types, such as office buildings occupied by public services,” a consultation document warned.

The exact values for retail and higher multipliers will be set by ministers in separate regulations, considering a revaluation of non-domestic rates that is still pending.

Local Cost Differences Highlighted

Research earlier this year by Aberystwyth Town Council showed that the cost per square metre in Aberystwyth is almost three times higher than in Swansea’s main shopping street.

Author's Summary

This reform aims to support small Welsh shops by reducing their tax burden while increasing rates for larger properties to maintain overall government revenue.

Cambrian News — 2025-11-06