The Welsh Government has announced an additional £116 million support package aimed at easing business rates changes for 2026, as rates in Wales will be updated to reflect current property values.

The new transitional relief scheme will help businesses manage rates changes from next April.

From April 1, 2026, the revaluation will mean many will see their bills fall, while others will see them go up.

Any business whose bill increases by more than £300 next year because of the revaluation will have the rise phased in gradually over two years, rather than paying the full increase immediately.

For the first time since 2010, the multiplier will be reduced for all ratepayers. Small and medium-sized retail shops will benefit from a new lower rate, cutting their bills by around £20 million.

The Welsh Government already provides £250 million each year in permanent business rates relief. Around two thirds of all properties in Wales either pay no rates or receive some form of relief.

Welsh Labour Government Cabinet Secretary for Finance and Welsh Language Mark Drakeford said: "We know businesses have faced significant economic challenges in recent years. This support package will help them manage the transition to updated rates bills while we deliver on our commitment to a fairer rates system.

"By introducing more frequent revaluations and a lower rate for small shops, we're making sure the business rates system reflects today's economy and supports the businesses that are the backbone of our high streets and communities."

The 2026 revaluation will be the second delivered this Senedd term and the first on the new three-yearly cycle introduced as part of non-domestic rates reforms.

The draft Non-Domestic Rating (Chargeable Amounts) (Wales) Regulations 2025 will be laid before the Senedd as soon as possible to provide for transitional relief.