A MAJORITY of businesses in Gwent’s most affluent county are unlikely to see an increase in business rates, a top councillor has said.
Councils collect business rates from properties businesses and other employers occupy and pass the money on to the Welsh Government which controls the system.
The ratable value of a property is determined by the UK Government’s Valuation Office Agency which reviews property values every three years, and a formula that multiplies the value against a set amount, which is known as the “multiplier”.
The latest review, and the winding down of support for pubs and restaurants put in place during the Covid pandemic, has led to fears of escalating costs, particularly for smaller high street traders.
Councillor Paul Griffiths, who is Monmouthshire County Council’s cabinet member responsible for the economy, said changes being introduced by the Welsh Government will support town centre businesses.
The Labour councillor told the council’s cabinet meeting: “I’m delighted to have the opportunity to share information on how the Welsh Government is supporting businesses across Wales and developing a truly Welsh approach to business rates.”
The Chepstow councillor said existing policies that businesses with a rateable value of less than £6,000 receive 100 per cent relief and that relief is tapered for all businesses with a ratable value of up to £12,000 will remain.
“What is new is retail businesses with a ratable value of up to £51,000 will have a multiplier of 35 pence in the pound which is significantly less than the standard multiplier of 52 pence in the pound.
“So for all those businesses with a ratable value of less than £51,000 their multiplier will decrease from over 50 pence to 35 pence in the pound. For many retail businesses this will more than compensate for the withdrawal of the Covid relief which has been diminishing over the years.
“In addition to those multipliers Welsh Government has introduced 15 per cent relief specifically for retail and hospitality businesses.
“Having looked in detail at the data I’m confident a good majority of businesses in Monmouthshire will have no cash increase in their business rates liability in 2026/27.”
Cllr Griffiths acknowledged “some businesses will pay more but it will be a minority” and said where there are increases in liability of over £500 the increase will be phased over three years.
He added: “Welsh Government is reforming business rates. I’m pleased it is doing so in in a way that encourages small businesses in vibrant high streets.
“Where there are businesses, that occupy large out of town spaces, trading high volume online they may find their business rates liability increases but their tax to turnover ratio will remain low compared to the high streets themselves.”
Cllr Griffiths had been asked about support on business rates by Conservative opposition group leader Cllr Richard John.
Labour’s Cllr Griffiths acknowledged the rates multiplier is “complicated” and increases have caused uncertainty but said he hoped all councillors could work together to explain the changes and “that uncertainty will not result in increased business rate liability.”
Cllr John, who represents Mitchell Troy and Trellech, thanked Cllr Griffiths for his response.
