FSB Wales has welcomed elements of the Welsh Government’s transitional relief scheme for business rates but say they are disappointed that hospitality and leisure has not been offered dedicated support.
The new transitional relief scheme will help businesses manage rates changes from next April.
The Welsh Government has announced an additional £116 million of support as business rates in Wales will be updated to reflect current property values.
From 1 April 2026, the revaluation will mean many will see their bills fall, while others will see them go up, the Welsh Government said.
Any business whose bill increases by more than £300 next year because of the revaluation will have the rise phased in gradually over two years, rather than paying the full increase immediately.
For the first time since 2010, the multiplier will be reduced for all ratepayers. The normal business rates percentage will drop to 0.502 whilst small and medium-sized high-street retailers will get a lower rate of 0.350.
FSB Wales welcomed elements of the support package for non-domestic rates, but expressed “deep disappointment” that pubs, restaurants, hotels, gyms and other leisure and hospitality businesses were overlooked.
Joshua Miles, Head of FSB Wales, said:
“This announcement is an important step forward for independent retailers across Wales. FSB Wales has long argued for permanently lower rates for smaller businesses and these measures will limit the impact for those facing big bill increases.
“FSB Wales welcomes this targeted relief, especially the lower rate for independent retailers, but we are very disappointed that leisure and hospitality businesses, which have been among the hardest hit in recent years, have not been explicitly mentioned and given similar dedicated support.”
FSB Wales is calling on Welsh Government to use the final budget in January 2026 to confirm continued or enhanced rates relief for the hospitality and leisure sector, which it says has faced years of rising energy bills, staffing shortages and fragile consumer confidence.
“We urge Welsh Government to build on this momentum in the final budget next month by addressing broader cost challenges, including targeted rates relief for the hospitality and leisure sector, to ensure our independent businesses on our high streets can truly get the support they need across Wales,” Joshua said.
Jim Jones, CEO of North Wales Tourism, said:
“As an industry voice for North Wales, we naturally welcome any additional support for businesses facing the 2026 revaluation, and the £116 million transitional package together with the first multiplier cut since 2010 will provide some genuine help.
“However, it is impossible to ignore that the Welsh scheme is significantly less generous than the one being delivered in England, despite both being funded from the same UK Government consequentials.
“The flat £300 threshold and two-year phasing leave many small and medium-sized businesses paying more. Welsh ratepayers deserve transparency about how much of the £505 million consequential has actually been passed on to them, rather than diverted elsewhere.
“At a time when our high streets and town centres are already under enormous pressure, this feels like another example of Welsh businesses being short-changed.”
Peter Lynn, Chair of Swansea BID, said:
“We welcome all support that can be given to local business and we note the specific retail sector support which is particularly important. However we await the outcome and detail of the proposals to see if it assists all city centre business and we repeat our call for special status to be given to city centre businesses in all sectors and in particular our hospitality and leisure sectors who are vital to city centre life and who face particular challenges.”
Carolyn Brownell, Executive Director at FOR Cardiff, said:
“As the Business Improvement District representing more than 800 levy-paying businesses in Cardiff city-centre, FOR Cardiff recognises the importance of stability during periods of revaluation. We welcome the Welsh Government's announcement of a £116 million support package ahead of the re-evaluation of business rates from 1st April 2026. While the measures outlined are encouraging, the current business rates system continues to place a disproportionate burden on high-street businesses.
“Many high-street businesses are already navigating rising costs, shifting consumer behaviours and a slower post-pandemic recovery. Without a fundamental overhaul of the system, these challenges will persist and constrain economic growth. Business rates reform must deliver a fairer framework which supports the businesses which keep our high streets and communities thriving.”
The Welsh Government said it already provides £250 million each year in permanent business rates relief. Around two thirds of all properties in Wales either pay no rates or receive some form of relief.
Cabinet Secretary for Finance and Welsh Language Mark Drakeford said:
“We know businesses have faced significant economic challenges in recent years. This support package will help them manage the transition to updated rates bills while we deliver on our commitment to a fairer rates system.
“By introducing more frequent revaluations and a lower rate for small shops, we're making sure the business rates system reflects today's economy and supports the businesses that are the backbone of our high streets and communities.”
