The Welsh Government will provide all businesses in Wales with a new rates support worth more than £460 million over the next two financial years.
The package – due to be announced in the Welsh Government’s upcoming draft Budget – will support businesses amidst the impacts of inflation and rising energy costs.
High gas prices and tight capacity are straining the energy sector across Britain, with the impact ultimately being passed onto consumers. Earlier this week, EPEX prices reached a record high of £2,585/MWh.
The new rates will operate alongside the permanent relief schemes – which currently provide £240 million of relief to ratepayers in Wales this year – provided by the Welsh Government.
The Energy Bill Relief Scheme, which capped the predicted MWh price for electricity and gas for businesses at £211/MWh and £75MWh respectively, has provided significant support for non-domestic energy consumers throughout the UK this winter. Ahead of an increase on the current cap, which is scheduled from April 2023, the Confederation of British Industry has urged the UK Government to extend the Energy Bill Relief scheme and keep the current cap.
Between 2023 and 2024, the non-domestic rates multiplier has also been frozen at a cost of more than £200 million to protect against inflationary increase in the rates businesses and other ratepayers pay.
“We know that businesses are feeling the pressure of spiralling energy costs and rising inflation, while they are still recovering from the impacts of the pandemic” said minister for finance and local government, Rebecca Evans.
“We want businesses to know now that we will continue to apply substantial discounts to their rates bills, and that this package of support will help businesses to thrive in the hard times we know they are facing.”
The Welsh Government has promised a further £113 million to provide transitional relief to all ratepayers over the next two years, who – following the UK-wide revaluation taking effect on 1 April 2023 – experience a bill increase greater than £300.
Retail, leisure and hospitality businesses will also receive another £140 million. If eligible, ratepayers will benefit from 75% non-domestic rates relief in for 2023-2024, 25% higher than the previous year.
Minister for economy, Vaughan Gething said: “The additional support we have announced today will help us provide more certainty for businesses despite rising costs. I remain fully committed to moving the economy forward by supporting businesses to grow and thrive.”
