Wales has signed off a two‑year cap on business rates increases from 1 April 2026, a £116m package aimed at steadying bills after the next revaluation. “This support package will help them manage the transition to updated rates bills while we deliver on our commitment to a fairer rates system,” said Mark Drakeford, Cabinet Secretary for Finance and Welsh Language. The regulations take effect from 31 December 2025.

In plain terms, if your Welsh property’s bill jumps by more than £300 because of the 2026 list, you won’t face the full hike straight away. You’ll pay a third of the increase in 2026‑27 and two‑thirds in 2027‑28, before moving to the full amount in 2028‑29. The scheme is automatic, applies to local and central list properties, and recalculates if your bill falls after an appeal.

Eligibility is tight but clear. The same ratepayer must have occupied the property on 31 March 2026 and still be liable on the day the bill falls due, the increase must top £300, and the property cannot be under a section 44A part‑occupation apportionment. Councils will apply the discount to bills without an application, while Welsh Government handles central list accounts directly.

Ministers are also resetting the rates people pay per pound of rateable value. In 2026‑27 Wales will cut the standard multiplier to 0.502, introduce a new 0.350 retail multiplier for smaller shops, and add a 0.515 higher multiplier for the most valuable properties. Government estimates say the retail rate trims around £20m off bills for eligible shops and marks the first across‑the‑board multiplier cut since 2010.

For northern operators with sites either side of the border, the comparison matters. England’s 2026 package brings permanently lower multipliers for retail, hospitality and leisure under £500,000 rateable value, plus a higher rate for large premises. Its transitional relief uses tiered caps by property size rather than Wales’s simple two‑year phasing, and a one‑year supplement helps fund the scheme. Finance teams in Cheshire, Merseyside and Greater Manchester with Welsh outlets in Wrexham, Deeside or along the A55 should model both sets of rules.

Here’s what that Welsh phasing looks like on a typical bill. If a shop in Llandudno sees a £3,000 increase from April 2026, it pays £1,000 of that rise in 2026‑27 and £2,000 in 2027‑28 before reaching the full £3,000 uplift in 2028‑29. The relief runs on a daily calculation and 2027‑28 accounts for the leap day.

Retailers also get a new, permanent lower rate in Wales - but it’s tightly defined. The 0.350 retail multiplier applies to shops with rateable values under £51,000 and specific “shop” descriptions on the local list, such as pharmacy, kiosk or post office. It equates to roughly a 30% reduction versus the standard multiplier where no other relief already wipes the bill.

Not everyone is covered. If the liable ratepayer changes after 31 March 2026, or the property was empty on that date, the transitional cap won’t apply. Properties under a formal part‑occupation split also don’t qualify. If a council cannot apply the relief from 1 April 2026, guidance says they should notify eligible ratepayers and reissue bills once systems catch up.

Business groups are split on the wider design. Retailers welcomed help for smaller shops but warned against the new higher rate on larger premises. “Shifting the burden from one group of shops to another isn’t reform - it’s a reshuffle,” said Sara Jones of the Welsh Retail Consortium.

For northern chains with Welsh branches - from Chester‑based independents trading into Wrexham to manufacturers on Deeside Industrial Park - the to‑do list is straightforward: confirm your 31 March 2026 occupancy status, check the 2026 valuation, and cost scenarios for both multipliers and transitional relief. Welsh councils will apply the cap automatically, but owners should still sanity‑check bills and flag errors early in the new tax year.