Response to Letter sent by WTA 8th March regarding the Retail, Hospitality and Leisure Rates Relief scheme.
In 2022-23, the Welsh Government will provide £116m of targeted non-domestic rates support to businesses in the retail, leisure and hospitality sectors. Ratepayers will be eligible for 50% off their liability for the financial year. The amount of relief under the Welsh Government’s Retail, Leisure and Hospitality Rates Relief (RLHRR) scheme will be capped at £110,000 per business across Wales. Our approach means that businesses in Wales will receive comparable support to that provided in other parts of the UK.
To ensure businesses in Wales are sufficiently supported, and reflecting the nature of our tax base, we have invested an additional £20 million on top of the consequential funding received from the UK Government. This is in addition to our permanent relief schemes that provide over £240m of relief every year.
Full guidance on the scheme is published on Business Wales webpages and as in previous years, the scheme will be administered by local government. The Retail, Leisure and Hospitality Rates Relief scheme for 2022-23 will be application based, designed in a manner such that local authorities are able to ensure the £110,000 cap is accurately enforced across Wales. The scheme guidance and timescales for administration has been developed in conjunction with local authorities. Businesses that have been able to continue trading at a substantial level, such as food retailers, may opt not to apply for the relief despite being eligible.
The scheme applies to rates liability from 1 April to 31 March for the relevant tax year. Any queries about eligibility for relief and the application process should be directed to the relevant local authority. The Retail, Leisure and Hospitality Rates Relief scheme for 2022-23 will operate on a similar basis to how it has done in 2020-21 and 2021-22, using discretionary powers under section 47 of the Local Government Finance Act 1988, as such no legislation will be in place governing the specific operation of the scheme.