In a preliminary response to the Welsh Government’s Draft 2025-26 Budget, Sara Jones, Head of the Welsh Retail Consortium, said:
On Non-Domestic Rates:
“We welcome the news that the increase in the non-domestic rates multiplier will be capped at 1 per cent, recognising the huge burden this outdated tax has on business. Whilst the increase is below inflation it will, however, continue to place a significant burden on the retail industry and requires a fundamental overhaul. The multiplier is at a 25-year high and remains higher in Wales than in England and Scotland, acting as a significant barrier to investment, jobs and growth.
“Retailers have already been clobbered by the UK Government’s colossal increase in employer national insurance contributions, disproportionately impacting the industry which has seen sales flatline for much of the year. We will be seeking opportunities to engage in targeted interventions when it comes to business rates over the course of 2025, helping to ensure we have thriving shops of all sizes and successful high streets ensuring breadth of choice, convenience and experience for customers.”
On the Welsh Rate of Income Tax:
“The Finance Secretary has heeded our warnings and ruled out an increase in the Welsh rate of income tax in the coming year. Any such uplift would have left pay packets lighter and dented shopper spending, impacting retailers who are already facing subdued consumer confidence, little to no growth in retail sales and nosediving footfall”.
