Retail and hospitality receive rate relief in Welsh Budget

  • Tim Evershed
  • 20 December 2021 09:01

The Welsh Budget acknowledged the continued toll that the pandemic is taking on the principality’s retail, leisure and hospitality businesses as it set out continued economic support for these sectors in the form 50% of non-domestic rate relief.

Welsh Assembly building

The announcement was made in the Welsh Budget for 2022/23, where the Welsh Government unveiled a £116 million package of funding (PDF 1.7mb), combined with existing permanent relief schemes, that sees over 85,000 properties continue to receive support. The scheme will be capped at £110,000 per business.

Many firms had been receiving 100% off their rates, which help pay for services provided by local government, but previous Covid-19 business rate schemes had come to an end.

A further £35 million has been set aside to freeze the non-domestic rates multiplier for 2022/23, so there will be no increase in the amount of rates businesses are paying.

A consultation will be launched to allow the Land Transaction Tax on the purchase of second homes and short-term holiday lets to be varied locally. However, the budget announced no tax changes and specifically no changes to the rates of income tax.

Finance Minister Rebecca Evans promised a ‘fairer, greener Wales’ and pledged targeted, green investment of an additional £160 million revenue and a total capital investment of £1.8.

It includes funding to support the Programme for Government commitment to a national forest as well as biodiversity, active travel, the circular economy, renewable energy, flooding, and decarbonising housing.

The Welsh Government has also provided funding to support coal tip safety and support their remediation, reclamation and repurposing, with an additional £4.5 million and total capital investment of £44.4 million.

Commenting on the Budget, Ms Evans said:

‘This budget will support the Wales of today and shape the Wales of tomorrow. It will support our public services to be stronger, put Wales further down the path to being a net zero nation, and create a fairer nation with equality at its heart.’ 

‘This is a budget to kickstart delivery of our ambitious and bold Programme for Government, and I am proud to publish it, providing the foundations for recovery and moving us towards a stronger, fairer, greener Wales.'

 

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