Drakeford rates reform 'a mixed bag for business'

MARK Drakeford has announced proposals for major changes to business rates in Wales.

- By CHRIS HAINES

Under the plans, the finance secretary wants to change the way rates are calculated depending on the size of the business.

Business rates are charged on most non-domestic properties, like shops, offices, pubs, warehouses, factories, and holiday rental homes or guest houses.

The charge is based on a property's rateable value, which is calculated by the Valuation Office Agency and is an estimate of how much it would cost to rent a property for a year.

The rateable value is multiplied by the current non-domestic rates 'multiplier'.

After a new law was passed in 2024, the Welsh Government can introduce differential multipliers for Wales using regulations.

It is now consulting on proposals to introduce a lower multiplier for small-to-medium-sized retailers and a higher multiplier for high-value properties. The exact rates will be set during the Welsh Government's budget planning for 2026-27.

Explaining his plan, the former first minister said: "The multiplier is a key determinant of the bills for individual ratepayers and, in turn, the total amount of revenue raised from non-domestic rates to support vital public services.

"Differential multipliers provide an opportunity to permanently re-balance relative liabilities across different parts of the tax-base without changing total revenue."