Welsh retail businesses among those offered 40 per cent rates relief in 2025-26

Retailers across Wales are set to receive a 40% cut to their business rates under a new Welsh Government support scheme aimed at helping high street and visitor-facing businesses recover from recent economic pressures.

The Retail, Leisure and Hospitality Rates Relief scheme will apply in 2025-26 and is designed to support shops, cafés, pubs, restaurants and similar businesses operating from occupied premises.

The Welsh Government will provide grant funding to all 22 local authorities to deliver the scheme, with councils responsible for administering applications and awarding relief.

Eligible businesses will receive a 40% discount on their non-domestic rates bills, subject to a cash cap of £110,000 per business across all properties in Wales.

Businesses with multiple premises can claim relief on each eligible property, provided the total support claimed does not exceed the Wales-wide cap.

Retail properties covered by the scheme include shops selling goods to the public, such as supermarkets, charity shops, pharmacies, garden centres and petrol stations.

Hospitality businesses including cafés, coffee shops, pubs, bars, takeaways, restaurants and hotels are also eligible for the discount.

Leisure uses covered by the scheme include gyms, theatres, cinemas, live music venues, tourist attractions and sports facilities.

Relief will apply to properties that are occupied between 1 April 2025 and 31 March 2026 and will be calculated on a daily basis, with applications needing to be submitted to local authorities by 31 March 2026 for businesses to qualify for support in the 2025-26 financial year.

Financial and professional services such as banks, solicitors and accountants are excluded, along with medical services, nurseries, gambling venues and properties not accessible to the public.

Empty properties will not qualify for the scheme, although they may still be eligible for existing empty property rates relief.

Local authority-owned or managed premises, including council-run visitor centres and cafés, are also excluded.

The relief is discretionary, meaning councils will decide whether to apply it in individual cases in line with Welsh Government guidance.

Businesses will be required to declare that they are not exceeding the £110,000 cap and that claims comply with UK subsidy control rules.

Any business found to have deliberately claimed more than the permitted limit risks having all relief withdrawn and may face legal action for fraud.

Image credit: manuta/stock.adobe.com