“This support package will help them manage the transition to updated rates bills,” said Mark Drakeford MS as Welsh Ministers signed off new regulations to soften the jump from April 2026. The Non‑Domestic Rating (Chargeable Amounts) (Wales) Regulations 2025 were made on 17 December and come into force on 31 December 2025, setting up a two‑year cushion for bigger increases after the 2026 revaluation.

From 1 April 2026, any property in Wales facing a business rates rise of more than £300 because of the revaluation will have that increase phased in. In year one, only a third of the extra liability is paid; in year two, two‑thirds; by year three, the full bill applies. The Welsh Government says the scheme is simple, automatic and consistent across all sectors.

Eligibility is tight but clear. To qualify, the property must appear on the list on 31 March 2026 and remain on the list through the relevant day; the same ratepayer must have occupied it on 31 March 2026; and the rise must exceed £300. Where a property is treated as partly empty under section 44A rules, transitional relief does not apply.

Under the regulations, councils calculate a base liability using the 31 March 2026 position, then a notional chargeable amount for 1 April 2026 without relief. The gap between the two is the increase to be phased. The reduction is worth 67% of that increase in 2026‑27 and 34% in 2027‑28; there is no transitional reduction in 2028‑29.

What does that look like on the ground? If a workshop’s annual bill would jump from £10,000 to £13,000, the £3,000 increase is phased. In 2026‑27 the business pays £10,000 plus 33% of the increase (£990), so £10,990. In 2027‑28 it pays £10,000 plus 66% (£1,980) for £11,980. From April 2028, the full £13,000 applies.

Bills are adjusted automatically by local authorities for properties on local lists; for sites on the central list, the Welsh Government will do the maths. Calculations are made daily, so if your notional bill falls during the period, the relief is recalculated from the date the change takes effect.

Cardiff has set aside £116m to fund the relief in 2026‑27 and 2027‑28. Senedd scrutiny notes estimate the cost at £77m in the first year and £39m in the second, reflecting how the taper works as businesses step towards their full bills.

This sits alongside wider changes planned for April 2026. Ministers have confirmed a reduced standard multiplier for all ratepayers at 0.502, plus a new lower 0.350 retail multiplier for small and medium shops and a 0.515 higher multiplier for the largest properties, subject to Senedd approval of the value‑setting regulations early in the New Year. The legal framework to define who can use the lower and higher multipliers was put in place in November.

For North Wales, the mix matters. High streets from Wrexham and Mold to Llandudno and Bangor should see the retail multiplier take the edge off for smaller shops, while transitional relief blunts sharper rises elsewhere across Deeside and the Wrexham Industrial Estate. Hospitality and leisure venues will still want to watch their numbers closely through 2027‑28, when the taper narrows.

Not everyone is reassured. UKHospitality Cymru says rates for the sector are set to climb by £131m over three years compared with current bills, warning of closures without wider support. “These staggering increases are the direct result of Welsh Government stripping out any meaningful business rates support from hospitality businesses,” said executive director David Chapman.

For finance teams, the immediate task is practical. Check your draft 2026 valuation, factor the 67% then 34% taper into cashflow, and speak to your council if the bill looks off. Councils will apply the relief automatically where criteria are met, but they also advise businesses to get in touch if a recalculation is needed.

Key dates are locked in: regulations in force from 31 December 2025; relief applies from 1 April 2026 to 31 March 2029, with no transitional reduction in the final year. Wales is also revoking the 2022 transitional scheme, replacing it with this new two‑year glide path into the 2026 list.