Welsh Government announce £24m support to help struggling high streets via business rates relief

Finance Minister Rebecca Evans has today announced an additional £24.2m to support Welsh businesses in 2020-21 through the Welsh Government’s high street and retail rates relief scheme.

The scheme, which was first introduced in 2017, is being extended for a further year providing support to over 15,000 small and medium-sized businesses, including shops, restaurants, cafes, pubs and wine bars, to help them pay their rates bills.

It will reduce business rates bills to zero for retail properties with a rateable value up to £9,100 and reduce bills by £2,500 for properties with a higher rateable value.

Finance Minister, Rebecca Evans said: “We recognise the importance of a healthy retail sector in Wales, and the impact the current economic climate has had on some high street businesses.

“The extended relief scheme I am announcing today will continue to provide much-needed support for struggling retailers in Wales, helping to keep the high street vibrant and at the heart of local communities.”

Welsh Government say local councils will also receive a further £2.4m to provide additional discretionary rates relief “allowing them to respond to specific local issues”. This funding will be provided through the local government settlement for 2020-21, taking the total being provided to local authorities for discretionary relief to £4.8m for 2020-21.

They added, “The high street rates relief scheme and the additional funding for discretionary rates relief, together with our permanent small business rates scheme and other bespoke reliefs, combine to offer timely and targeted support for ratepayers across Wales.”

Contrary to the everlasting belief of some on social media Wrexham Council do not set business rates, but do collect them. Welsh Government sets the business rates multiplier, and have offered several relief packages for some business rate payers over the years.

As always with any type of bill, it is worth double checking the amounts and asking if you are eligible for any relief, and if so, is that possible to be backdated as well. The new announcement is specific in noting “…will continue to be administered by local authorities on an application basis”.

Although often called support for the High Street it will support retailers in other locations, with notes for eligibility including: “i. Hereditaments that are being used wholly or mainly for the sale of goods to visiting members of the public. ii. Hereditaments that are being used wholly or mainly for the provision of the retail services to visiting members of the public iii. Hereditaments that are being used wholly or mainly for the sale of food and/or drink to visiting members of the public.” There is exclusions as well, “i. Hereditaments with a valuation of more than £50,000. ii. Hereditaments not reasonably accessible to visiting members of the public. iii. Hereditaments that are not occupied. iv. Hereditaments that are in receipt of mandatory charitable rates relief.”

The Welsh Government also noted, “The UK Government made a commitment in the Queen’s Speech to enhance their support for retail businesses. Once further details are known, the Welsh Government will consider how any additional consequential funding allocated to Wales can be best targeted to support communities and businesses in Wales as part of our budget and spending priorities.”