The Welsh Government announced its Draft Budget on Monday, 20th December 2021. This included £116bn package of rate relief to support businesses most directly affected by the pandemic, comprising an additional £20m on top of consequential funding received from the UK Government.
Retail leisure and hospitality ratepayers in Wales will receive 50% non-domestic rates relief for the duration of 2022-23. Like the scheme announced by the UK Government, this will be capped at £110,000 per business (not per site) across Wales. Many firms currently receive 100% discount.
The Welsh Government is also freezing the non-domestic rates multiplier in Wales for 2022-23, ensuring there will be no increase in the amount of rates which businesses and other ratepayers pay next year.
Andrew West, Business Rates Director with Cooke & Arkwright said, “The 50% rate relief for the retail, leisure and hospitality sector in Wales is to be welcomed.
“The measures mean that retail, leisure and hospitality businesses in Wales will receive comparable support to that announced previously in England for 2022-23. Currently, these sectors benefit from full relief in Wales in 2021-2022 compared with two-thirds relief in England.
“However, the cap of £110,000 means that while smaller businesses will benefit, larger businesses or chains with multiple sites for example, will receive limited support.
“Also, it is not clear at this stage how the Welsh Government is allocating its share of the UK Government’s Covid19 Additional Relief Fund (CARF). This was provided by the UK Government to support businesses outside the retail, hospitality and leisure sectors adversely affected by the pandemic, but unable to appeal based on material change in circumstances (MCC) after HM Treasury and the Welsh Government introduced retrospective legislation ruling this out.”