Welsh Government hits back after business rates announcement

In the latest Welsh Government budget, announced on December 18 and set to take effect in April next year, the business rates relief scheme is set to be reduced from 75 per cent discount to 40 per cent discount.

For tapas restaurant Bar 44 in Penarth, co-owner Natalie Isaac told the BBC the relief reduction could cost her business as much as £1,000 a year, while Mint and Mustard general manager Ram Sapkota was left bewildered asking why the government doesn’t help keep businesses going.

“The government is supposed to help businesses sustain and retain them,” said Mr Sapkota.

“We already have problems. You can see it in high street shops closing."

Mint and Mustard general manager Ram Sapkota (right) has been left bewildered by Welsh Government policy (Image: M&M)

Bar 44 in Penarth say the rates relief reduction could cost their business as much as £1,000 a year (Image: Newsquest)

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The government’s announcement was concerning for businesses across the Vale including in Barry where the high street continues to fluctuate.

Independent businesses such as Sausage Revolution and Kerry’s Deli are closed or closing while there is a huge hole in Holton Road high street with Wilkos department store currently empty.

It all led the mayor of Barry to describe the government’s rate relief reduction announcement as a “huge blow” to the town’s shopping experience.

However, the Welsh Government, whose minister for finance Rebecca Evans admitted the latest funding settlement will not provide enough money to “meet all pressures”, highlighted a number of measures in place to support the high street.

A spokesperson for the Welsh Labour government said: “We are providing a package of rates support worth £134 million next year on top of our permanent relief schemes, which are worth £250 million a year.

“Thanks to our generous system of full reliefs, almost half of ratepayers, including thousands of small businesses across Wales, do not pay rates at all.

“We are providing a fifth successive year of support for retail, leisure and hospitality businesses with their rates bills, at a cost of £78 million.

“This builds on the almost £1 billion of support provided in rates relief schemes to these sectors since 2020-21.

High streets in England might fare better as their business rates relief stays at 70 per cent (Image: PA Media)

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“A new £20 million capital fund will also be developed for 2024-25 to provide support to help retail, leisure and hospitality businesses future-proof their businesses.

“We have taken the decision to cap the increase to the non-domestic rates multiplier for 2024-25 to five per cent, at a recurring annual cost to the Welsh budget of £18 million.

“This is the maximum level of support affordable using all of the consequential funding which came to Wales as a result of decisions relating to the multiplier announced in the UK Government’s Autumn Statement.”