Finance minister explains how extra £505m will be spent across Wales

WALES' finance minister Mark Drakeford has said some of the extra £505m the Welsh Government was told it will receive from the UK Government will be spent on a scheme helping businesses who may see their non-domestic rates go up when revaluation figures are soon published.

- RUTH MOSALSKI Political editor [e-mail]

Chancellor Rachel Reeves on Wednesday announced her spending plans in the Budget. While it included some specific announcements for Wales decisions she has made that were England-only result in a consequential payment being made for Wales. She said that will be worth £505m.

In an interview with our website WalesOnline after the Budget announcement, Mr Drakeford said he expects most of that will be spent on a transition fund for business rates.

The next revaluation will come into effect in Wales and England on April 1, 2026. It will be based on the cost to rent a property for a year on April 1, 2024.

At revaluation:

■all properties are given a new rateable value

■multipliers (standard and small business) are revised

However he said the UK Government will likely follow suit. Mr Drakeford said the £505m pledged by UK Government was "very welcome".

"It's £500m over and above the £1bn we get next year. The extra £1.3bn on top of the £1bn we get in the second year and the £1.6bn, which is on top of the £1bn and the £1.3bn that we had in the third year. So the big announcements were made back in June in the comprehensive spending review.

"The £500m over that period is very welcome."

Asked by WalesOnline how he expected the money to be spent he said: "We probably have some initial ideas. We know that a fair amount of it is a consequential of the UK Government's decision to offer a transition scheme for businesses caught up in the non-domestic rates revaluation.