A new analysis from the Welsh Retail Consortium (WRC) suggests shops in Wales could see a £7.2 million hike in their business rates bills from April.
The latest ONS Consumer Price Index reveals that inflation stood at 1.7% last month. September’s inflation rate is what UK Ministers traditionally use to calculate the business rate for the coming financial year. If Welsh Ministers follow suit, then retailers in Wales could potentially face an extra £7.2 million on their annual business rates bills from April 2025. Retail accounts for a quarter of all rates in Wales.
The WRC is warning that it comes as Welsh retail sales continue to flatline and retailers face greater outlays to run their business including additional statutory obligations on sustainability and recycling, obesity, and the national living wage.
Sara Jones, Head of the Welsh Retail Consortium, said:
“Retail sales have flatlined over the past year and trading conditions remain challenging. Despite this, it seems a chunky £7.2 million extra could be added to retailers’ rates bills next spring.
“With the business rate already at a 25-year high a far more ambitious and coherent approach is urgently required, one which views rates as a means of stimulating commercial investment in retail destinations rather than squeezing yet more tax revenue. Increasing taxes further could exacerbate the problem.
“We hope Welsh Ministers will act in the Budget to focus on economic growth and help make Wales the best place to grow a retail business in the UK. We urge Ministers to rule out any increase in the business rate and to introduce a Retail Rates Corrector – a 20% downward adjustment in business rates paid on all retail premises – to redress the imbalance that sees retailers paying a higher proportion of their profits in taxes of almost any industry.”
