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Posted: Wed 11th Dec 2024
The Welsh government has extended the 40% business rates relief for retail, hospitality and leisure businesses in its draft Budget for 2025-26.
Announcing the £26bn Budget for next April, cabinet secretary for finance Mark Drakeford said the discount will continue for eligible businesses with a rateable value of up to £110,000. In addition, the non-domestic rates multiplier will be capped at 1% for 2025-26, and the 100% relief for registered childcare premises has been made permanent.
Emma McClarkin, CEO of the Welsh Beer and Pub Association, said:
"We have been loud and clear that the Senedd needed to maintain the vital business rates relief, which so many pubs rely on to counter the soaring cost of business they face.
"We welcome government heeding our warnings in this draft Budget and this relief, which amounts to £4.3 million, should bring pubs across Wales a much-needed sigh of relief and confidence to keep investing.
"It is also concerning that there is no mention of wider rates reform in the draft Budget; we continue to call for them to commit to meaningful long-term reform which will allow pubs in Wales to carry on pouring hundreds of millions of pounds into the economy and supporting tens of thousands of jobs."
Other announcements for businesses in the draft budget are:
Green business loans will be provided to encourage investment in energy efficiency enhancements and decarbonisation projects by small and medium sized businesses.
The Welsh government said it will continue to provide a source of alternative finance for businesses, including the Wales Micro Loan Fund which provides micro businesses and social enterprises with loans of between £1,000 and £50,000.
The government will continue to support Blas Cymru (Taste Wales), which it said has generated more than £35m worth of contracts for Welsh food and drink businesses.
The government will continue to invest in its apprenticeship programme to deliver 100,000 all-age apprenticeships by March 2026.
An extra £5m in resource funding and over £16m capital funding will be provided for culture, heritage and sport, with an additional £1.5m resource and £3m capital funding for the events and tourism industries.
The standard rate of landfill disposal tax will rise to £126 and to £6.30 per tonne for the lower rate to help reduce the amount of waste sent to landfill and encourage more recycling.
Mark Drakeford said:
"This is Budget for a brighter future, delivering an extra £1.5 billion for our public services and priorities, helping to put Wales firmly back on the path of growth after 14 difficult years. This is in stark contrast to the last couple of years when we have been forced to make some very difficult and painful decisions.
"This draft Budget offers a real opportunity to start to rebuild and reinvigorate our public services. It delivers increases to all departments and a significant boost in capital funding, meaning more investment in the very fabric of our nation -- in our school and NHS estate, in housing and in public infrastructure.
"This is good Budget for Wales. But it will take time to reverse the damage inflicted on Wales over 14 long years of neglect from previous UK administrations."
