Budget Helps Welsh Retail and Pubs
50% rates relief announced in today's Welsh Government budget
The Welsh Government is providing an additional £116m package of rates relief for businesses in sectors most directly affected by the Covid-19 pandemic.
Retail, leisure and hospitality ratepayers in Wales will receive 50% non-domestic rates relief for the duration of 2022-23.
Like the scheme announced by the UK Government, the Welsh Government’s Retail, Leisure and Hospitality Rates Relief scheme will be capped at £110,000 per business across Wales.
Ministers have also invested an additional £20 million on top of the consequential funding received from the UK Government.
This extended retail, leisure and hospitality relief scheme, in combination with existing permanent relief schemes, will see more than 85,000 properties in Wales supported in paying their rates bills in 2022-23.
The FSB is urging the Welsh Government to go further on Business Rates Support to Meet Rising Omicron Threat.
Ben Francis, Policy Chair at FSB Wales said: “While it’s welcome that Welsh Government has acknowledged FSB concerns about the need to continue to support businesses through the Business Rates system, it seems clear from the gathering economic clouds and the significant problems already being experienced by business in hospitality and retail, as well as other sectors, that today’s announcement may not be enough.
"The current situation is now moving fast with concerns about the spread of the Omicron variant now growing and many businesses across Wales are already seeing significant impact as a result of that. For others, confidence is ebbing away with uncertainty as to what sectors of the economy might yet face restrictions or be impacted by other factors such as staff absence or supply chain disruption. We know too that impacts will go far beyond any directly-restricted sectors into those businesses within the supply chain for example.
"We would strongly urge Welsh Government to consider going further in increasing the proportion of relief available, maintaining it at the existing 100% level as part of a package of measures to support smaller businesses through what is likely to be a very difficult period. "
Welsh Government Finance Minister Rebecca Evans has also funding for the NHS and local authorities.
Over the next three years the Welsh NHS will be supported to provide effective, high quality and sustainable healthcare, and help in its ongoing response to and recovery from the pandemic, with an additional £1.3bn in direct funding.
Local authorities will receive close to an additional £0.75bn providing funding to schools, social care and other vital services. In 2022-23 more than £250m will be provided for social services, including £180m within the local government settlement, direct investment of £45m and £50m of additional social care capital.
Wales’ response to the climate and nature emergency will be supported with targeted, green investment of an additional £160m revenue and a total capital investment of £1.8bn. It includes funding to support the Programme for Government commitment to a national forest as well as biodiversity, active travel, the circular economy, renewable energy, flooding, and decarbonising housing. £1.6bn capital will be invested in providing good quality housing, including £1bn for social housing and £375m for building safety.
The budget will also tackle inequality and invest in future generations through an additional £320m to continue a long-term programme of learning and education reform. This includes an additional £30million for childcare and early years provision; £40million for Flying Start and Families First; £90million for free school meals; £64.5million for wider schools and curriculum reform; and £63.5million investment in post 16 provision. On top of this, £900m capital funding will improve the quality of school buildings through the 21st century schools programme.
Future generations will also benefit from an additional £61m in the Welsh Government’s Young Person’s Guarantee and employability support, apprenticeship provision, and to expand Personal Learning Accounts.
Rebecca Evans, Minister for Finance and Local Government, said: “This budget will support the Wales of today and shape the Wales of tomorrow. It will support our public services to be stronger, put Wales further down the path to being a net zero nation, and create a fairer nation with equality at its heart.
“We are still operating in a difficult financial context, with our budget nearly £3bn lower than if it had increased in line with the economy since 2010-11. Revenue funding is increasing by less than half a per cent in real terms between 2022-23 and 2024-25, and overall capital funding is falling in cash terms in each year of the Spending Review period – 11% lower in real terms in 2024-25 than the current year.
“The UK Government’s Spending Review did not deliver for Wales and this budget is delivered in that context. While there are tough choices ahead, we have been able to provide funding that will allow Wales to rise to the challenges we face, grounded in the distinctively Welsh values of environmental, social and economic justice.
“Where the Spending Review was silent on the climate and nature emergency, we are taking action. Where the Spending Review did not support coal tip safety, we are stepping up. And where the Spending Review failed to address regional inequality, we are investing in every part of Wales and making meaningful investment in tackling inequality.
“This is a budget to kickstart delivery of our ambitious and bold Programme for Government and I am proud to publish it, providing the foundations for recovery and moving us towards a stronger, fairer, greener Wales.”
The budget contains funding to support commitments in the Co-operation Agreement signed between the Welsh Government and Plaid Cymru, and will deliver the commitments in the updated Programme for Government.