12 August 2025
The Welsh Retail Consortium (WRC) has responded to the Welsh Government’s consultation on ‘Proposals for non-domestic rates differential multipliers’ which closes today.
Retailers account for over a fifth of the business rates paid in Wales and the business rate here is the highest in GB. The WRC’s submission:
- Praises the Welsh Government’s recognition of the disproportionate impact that business rates has on retail
- Welcomes the proposed permanent reduction in business rates for smaller stores
- Argues that a rates reduction should be extended to all shops in Wales
- Criticises the proposal to make medium-sized and larger shops pay even more through a rates surtax
Instead, the WRC argues that no shops should pay a higher business rate or surtax as a result of the reforms due to come into effect next Spring. It comes against a backdrop of weak shopper footfall and retail sales whilst statutory costs are spiralling as a result of the last UK Budget.
Sara Jones, Head of the Welsh Retail Consortium, said:
“Retailers have long borne the brunt of Wales’ outdated business rates system, so we welcome the Welsh Government’s promise to finally confront this issue. But let’s be clear: shifting the burden from one group of shops to another isn’t reform—it’s a reshuffle. Business rates in Wales are already at a 26-year high and the steepest in Great Britain. With retailers footing a fifth of the total bill, the strain is unsustainable. In April 2025 alone, UK retailers were hit with £2.3 billion in extra costs as a result of the UK Budget - £115 million of that here in Wales.
“A permanent cut to rates for the smallest shops is a step in the right direction, but real change means not leaving medium and larger retailers behind. These stores are the heartbeat of our high streets—drawing shopper footfall, creating jobs, and anchoring communities. Penalising them with a surtax would be a serious misstep. We need a system that rewards investment, not punishes scale. No store should pay more. Wales deserves a fairer, smarter approach—one that strengthens local economies instead of pushing businesses to invest across the border rather than here in Wales.”
