In recent days, businesses across Wales have been receiving VOA (Valuation Office Agency) letters informing them the rateable value of their business premises have been re-evaluated, resulting in significantly increased business rates bills from April 2026. This is yet another tax hike on businesses at a time when many are saying they are struggling to survive.
The Valuation Office Agency (VOA) has quietly published new rateable values for England and Wales. The majority of these have increased, resulting in some businesses reporting that their business rates will increase by tens of thousands of pounds, or even doubling, come April 2026.
The Welsh Government offer partial relief/support for business to help them meet the costs of business rates, but Ministers are yet to announce what that figure will be. Historically, businesses in Wales pay higher business rates than businesses in England because the support coming from Welsh Government is less than that offered in England. Welsh Labour have already taken the decision to remove relief from the hospitality sector in Wales, and it is expected that many more businesses will be paying full business rates from April 2026.
Analysis by the Professional Association of Self-Caterers (PASC UK) shows an average 24% increase in rateable values for self-catering properties in Wales, on top of already challenging pressures on the sector from tax increases, higher employment costs and damaging tourism policies like the 182-day occupancy thresholds and tourism tax. PASC estimate that, once changes are fully phased in, many hospitality businesses that don’t qualify for Small Business Rates Relief could see their bills sharply rise by around 57% over the next three to four years.
But these steep hikes in rateable values goes beyond the tourism sector. It is hitting all businesses – pubs, shops, cafes. Many businesses in Wales are already operating on extremely narrow profit margins, and many have contacted James Evans MS to say this could be the hammer blow that forces them out of business. For those that do continue trading, this latest tax hike leaves business owners with no choice other than to pass on these costs to consumers.
James Evans MS, Member of the Senedd for Brecon & Radnorshire, said:
“Our local businesses across Powys are already battling higher energy bills, rising wages and NI hikes. This latest tax raid, via higher rateable values, could force many out of business. Those that continue to operate will be forced to pass on the rises to customers, meaning we will all suffer. Local businesses are receiving VOA letters informing them of increased rateable values which will result in massive increases in their business rates, some as much as double - that is a hammer blow for small family-run businesses.
“Welsh Labour Ministers can’t just shrug and blame their counterparts in Westminster. It’s the Welsh Labour Government that sets the business rates multipliers and decides who gets relief. Welsh Labour have already taken the decision to remove hospitality relief in Wales, and it is expected that many more businesses will be paying full business rates from April 2026. Those that already pay business rates will see bills in 2026 rise massively. This is yet another Labour tax grab that will hurt us all.
“Welsh Labour Government have a clear choice: either shield small rural businesses from this revaluation shock, or watch more village pubs, shops and accommodation close their doors for good.
“I’ve tabled an urgent question to ask what support the Welsh Government will offer to businesses facing multiple hits from higher employment costs, soaring energy bills and now huge increases in their rateable values. Rural Wales needs a government that backs enterprise, not one that taxes our businesses out of existence.”
