Business rates transition fund likely to benefit from extra millions

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.

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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 us 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 England and Wales 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, and multipliers (standard and small business) are revised.

However, Mr Drakeford explained the UK Government plans to create a transition fund to help those whose rates go up and the Welsh Government will likely follow suit.