Wales has confirmed a new taper to soften business rates hikes after the 2026 revaluation, with increases above £300 phased over two years. Eligible ratepayers will see 67% of the uplift removed in 2026–27 and 34% in 2027–28, before paying the full bill in 2028–29. The rules sit in the Non‑Domestic Rating (Chargeable Amounts) (Wales) Regulations 2025, signed off by Cabinet Secretary for Finance and Welsh Language Mark Drakeford.

For high streets from Wrexham to Llandudno, this is about smoothing cashflow rather than wiping increases away. As the Welsh Government put it, the package is there to “help them manage the transition to updated rates bills” as new values take effect from 1 April 2026.

Who qualifies is tightly defined. The property must appear on the rating list on 31 March 2026, the same occupier must still be the liable ratepayer when the bill is due, and the premises must have been occupied on that 31 March date. If you’ve got a part‑occupation apportionment under section 44A, this taper won’t apply. The rules also cover the central list.

A quick sense‑check for shop owners: if your annual bill would jump from £10,000 to £16,000 next April, the £6,000 uplift is tapered. In 2026–27, 67% of that rise (£4,020) is knocked off, so you pay £11,980. In 2027–28, 34% (£2,040) is taken off, so you pay £13,960. From April 2028, you’re at the full £16,000, subject to any other reliefs you qualify for.

Councils will apply the relief automatically where the criteria are met, so most firms won’t need to file anything new. For properties on the central list, the Welsh Government adjusts the bills itself. If an authority can’t apply the relief straight away, businesses should still be told they qualify and that recalculated bills are coming.

This taper sits alongside wider rate‑setting changes in Wales from April 2026. Ministers have confirmed the standard multiplier will be 0.502, a new lower retail multiplier of 0.350 aimed at small and medium shops, and a higher multiplier of 0.515 for the largest properties by value. Government figures suggest the retail rate cut alone trims bills by around £20m in 2026–27.

Why The Northern Ledger cares: plenty of Northern firms trade over the border in North Wales or run depots on the A55 corridor. Wales sets its own multipliers and reliefs and pools the receipts centrally before redistribution, so a store in Flintshire can face different rules to one in Cheshire. Keep budgets site‑specific.

If your bill is due to fall after revaluation, that reduction lands in full. The taper only limits increases; it doesn’t slow decreases. Government guidance stresses many will see bills go down while others go up.

For Welsh councils and services, the mechanics matter. Non‑domestic rates are collected by billing authorities, then pooled and shared back out by the Welsh Government through the annual finance report. That helps fund schools, social care and local priorities, while keeping the tax decisions devolved.

Practical steps for finance leads this winter: check who is the legal ratepayer on 31 March 2026, avoid avoidable tenancy switches on or after 1 April if you’re relying on the taper, and keep an eye on any part‑occupation arrangements that could turn the relief off. If you think your rateable value looks wrong, speak to the VOA and, if needed, follow the Valuation Tribunal for Wales route.

Behind the numbers is a £116m funding pot to underwrite the taper across 2026–27 and 2027–28, on top of permanent reliefs worth about £250m a year. Ministers say around two‑thirds of properties in Wales either pay no rates or receive some relief already.

The direction of travel is set by law: Wales moved to three‑yearly revaluations through the Local Government Finance (Wales) Act 2024, giving ratepayers more frequent updates to reflect current rental values. Expect further technical tweaks via regulations as the April 2026 list beds in.