The Senedd has rubber stamped plans to cut business rates for about 13,000 smaller high-street shops in Wales while raising the amount payable for higher-value properties.

Finance secretary Mark Drakeford brought forward regulations to adjust the multipliers for business rates – officially known as non-domestic rates – for the first time from April 2026.

The Welsh Government will introduce a lower multiplier – a key determinant of bills – for smaller shops, kiosks, pharmacies and post offices with a rateable value below £51,000.

To offset the revenue lost from “bricks-and-mortar” shops, a higher multiplier will apply to about 3,200 bigger properties with rateable values of more than £100,000.

The higher multiplier would not apply to properties occupied by the public sector, including hospitals, surgeries, schools, colleges, museums, universities, courts and police stations.

But a consultation document warned it would not be possible to exclude more generic property types, such as office buildings occupied by public services.

The value of the retail and higher multipliers will be set by ministers in separate regulations, taking into account a revaluation of non-domestic rates which is yet to be concluded.

Research earlier this year conducted by Aberystwyth Town Council revealed the cost per square metre in the town almost three times higher than the main shopping street in Swansea.

Former Mayor, Cllr Maldwyn Pryse, told the Cambrian News: “After doing some background work it became clear that the cost per square metre on the main street through Aberystwyth was insanely high.

“We compared the cost per square metre on some of the main streets in cities and towns in Wales, which showed the extent of the problem.

“The cost per square metre in Aber is higher than any of the other towns and even higher than St Mary Street in Cardiff.

“The price per square metre is almost three times higher in Aber than the Kingsway in Swansea.

“I know that the method of working out the cost is complicated and that the rent charged also contributes but we really need to look for ways to try to solve the problem for the good of Aberystwyth.”

The research found that independent companies in the town centre also pay up to 10 times as much in business rates as large companies on the outskirts of the town.

In the Senedd on 4 November, Prof Drakeford said: “A lower retail multiplier will be introduced to rebalance the non-domestic rates system in favour of small-to-medium-sized shops.

“This reflects the unique challenges faced by bricks-and-mortar retail shops – not least through their exposure to competition from online retailers.”

Heledd Fychan, Plaid Cymru’s shadow finance secretary, agreed with the need to tailor multipliers to relieve the tax burden on smaller, domestic businesses.

Senedd members unanimously backed the regulations.

Speaking earlier this year, Ceredigion MS Elin Jones said: “It's unbelievable that Aberystwyth's business rates are so much higher than some of our capital's most populated streets, for example, given the difference in population.”