Welsh Government announce plan to freeze business rates multiplier next year

Business rates in Wales will not be subject to an inflationary increase in 2021-22 Finance Minister Rebecca Evans has announced today.

Welsh Government say freezing the multiplier next year will help support around 54,000 ratepayers across Wales, who are not already receiving 100% rates relief. This takes the total amount of savings businesses have received on their rates bills to more than £90m, since 2018-19.

Finance Minister Rebecca Evans said: “We recognise the pressures that businesses are facing and we are continuing to explore the support measures we can put in place to help businesses cope with the economic impact of the coronavirus pandemic and the end of the EU transition period.”

“The announcement I have made today provides businesses with the reassurance that they will not see an increase in their business rates liabilities next year.”

The current 2020-21 multiplier for all properties in Wales is 0.535 pence, this multiplier would likely have increased in line with Consumer Price Index inflation to 0.538 pence.

The financial benefit to ratepayers depends upon the size of their premises. One example give shows premises with a rateable value of £15,000 would benefit from a £45 lower bill than they would if CPI was used. At the top end of the scale, premises with a rateable value of £1.5m would receive a bill that is £4,500 lower than if CPI were used.