The Welsh Retail Consortium is calling on the Welsh Government to use its 2026/2027 Budget to support the sector.
Speaking ahead of the draft outline Budget being presented to the Senedd, Head of the Welsh Retail Consortium, Sara Jones, said that with footfall down across Welsh high streets and consumer confidence still fragile the Budget was a “vital opportunity to show genuine support for both shoppers and stores”.
The Budget is the last before next May's Senedd election and Finance Secretary Mark Drakeford has said it will increase departmental budgets by inflation. A pool of unallocated funding will be created for the next Welsh Government.
The 2026/2027 Budget will not introduce major new spending commitments, the Welsh Government says.
Sara Jones said:
“Retailers are working tirelessly to offer value to customers, yet they’ve faced an unprecedented surge in government-imposed costs throughout 2025 — from higher National Insurance and the National Living Wage to the new packaging tax — creating £320 million of additional pressure on Welsh retailers alone.
“While many key levers rest with the UK Government, the Welsh Finance Minister can still make a real difference by delivering a meaningful cut in business rates — ensuring no shop ends up paying more. Current proposals risk creating winners and losers, with a welcome reduction in rates for small stores but with medium sized and large stores — the backbone of many high streets — facing a surtax and sharp increases that could deter investment and further impact employment and prices.
“If Government chooses instead to pile on further costs to retailers, it’s households that will feel the squeeze at the tills. Ruling out any rise in the Welsh Rate of Income Tax, guaranteeing no store pays more in business rates, and pausing heavy-handed regulatory plans must all feature in this year’s budget to give the industry the boost it so urgently needs.”
The outline Draft Budget, set to be published on October 14, will set out high-level allocations for each Cabinet Secretary. The detailed Draft Budget with budget expenditure lines will follow on 3 November. The Final Budget will be published on 20 January 2026, with a debate and vote scheduled for 27 January.
