The business rate revaluation is a “hammer blow” to Mid Wales' businesses, a Powys MP has said

The revaluation, which has seen sharp increases in rateable values for a number of small and medium-sized firms, is already having a tangible impact on communities across Powys and the Swansea Valley. 

Independent shops, family-run pubs, tourism operators and agricultural suppliers have reported steep rises in their bills, threatening jobs and investment at a time when many are still recovering from years of economic instability and rising costs.

Local businesses in market towns such as Brecon, Builth Wells, Llandrindod Wells and Ystradgynlais have warned that higher business rates will force them to scale back opening hours, delay hiring plans or, in some cases, consider closure. 

In rural constituencies like Brecon, Radnor and Cwm Tawe, where margins are often tight and footfall seasonal, sudden increases in fixed costs can be the difference between survival and shutting the doors for good.

One Radnorshire family-run pub, The Fforest Inn at Llanfihangel Nant Melan near New Radnor, says their rateable value has increased by almost 450 per cent since before Covid.

Nikki and Colin Williams said they had received a letter from Powys County Council informing them that they are no longer considered a ‘small business’ and are therefore not eligible for Small Business Rates Relief Wales.

They said in 2023 their business rates were £3,000 now it is £13,000.

They said: “To say we are angry would be a massive understatement. Our rateable value has increased by nearly 450% since pre-Covid, despite our annual revenue being almost half of what it once was. I genuinely cannot understand how this makes any sense.

“This change means we will soon be paying more in business rates alone to the council than we pay ourselves. It feels incredibly short-sighted. 

“How many businesses will close before those in authority realise it is in everyone’s interest to help businesses stay open? How much will be lost in related taxes? How many more people will be pushed out of work? How skewed has the system become?”

They said they will fight the decision and submit an appeal but that all takes time and in the meantime the costs still land at their door. They said they have no choice but to increase prices and asked for their customers’ support.

“We are incredibly fortunate that, as a family, we live simply and are deeply passionate about keeping The Fforest going. After over 400 years of service, we truly don’t want to see that legacy end on our watch.”

The Welsh Liberal Democrats have argued that the revaluation process has failed to properly reflect the fragile state of many high streets and rural economies. 

They are calling for urgent mitigation measures, including enhanced relief for small businesses and hospitality, and a fundamental review of how non-domestic rates are calculated in sparsely populated areas.

David Chadwick said: “This revaluation is a hammer blow to hardworking local businesses across Brecon, Radnor and Cwm Tawe. At a time when shopkeepers, publicans and tourism operators are battling soaring energy costs, staffing pressures and reduced footfall, the last thing they need is a sudden spike in their rates bill.

“Small businesses are the backbone of our rural economy. They create jobs, sustain our high streets and underpin our tourism offer. Slapping them with higher fixed costs risks hollowing out our town centres and damaging communities that are already under strain.

“What makes this worse is the way the Government is trying to muddy the waters. Local councils are being left to collect these increased rates, even though they had no role in setting the policy or determining the revaluation. It looks like a deliberate attempt to confuse people and shift the blame onto local authorities.

“That is not fair on councils, and it is not honest with businesses. Ministers need to take responsibility for their decisions, provide meaningful relief and urgently rethink a system that is clearly not working for rural Wales.”