ACS has welcomed the publication of the Welsh Government's Budget for 2026-27, which confirms a significantly lower business rates multiplier for small businesses.

In the Welsh Budget, the Welsh Government have outlined the measures that they are taking to mitigate increases in rateable values facing businesses from April.

As a result of the 2026 revaluation, the standard multiplier will be reduced in 2026-27, to 0.502. A lower retail multiplier will also re-balance the non-domestic rates system in favour of small to medium sized retail shops. The new retail multiplier will be set at 0.350 for 2026-27. This will reduce the non-domestic rates bills of eligible ratepayers by around £20m.

The Welsh Government will provide transitional relief for all ratepayers whose liability increases by more than £300 following the 2026 revaluation. Any such increases will be phased in over two years. There will also be a higher multiplier levied on the largest (by value) properties, set at 0.515.

ACS chief executive James Lowman said: "We welcome the Welsh Government's commitment to significantly reduce the business rates multipliers for smaller retail premises. However, the removal of the 40% Retail, Hospitality and Leisure Relief first introduced during the Covid pandemic will mean that many stores see their rates bills increase in April, at a time when operating costs are rising and growth is hard to come by.

“Retailers tell us that higher business rates have a direct impact on investment decisions, employment opportunities and the services that are available for customers."

The UK Government is currently considering additional support for pubs as a result of concerns about increasing rates bills in England from April. ACS has written to the Exchequer Secretary calling on the Government to go further to support local shops, particularly independent retailers who are set to be hardest hit by the changes made in the Chancellor's Budget in December.

The full Welsh Budget is available here