Mark Drakeford unveiled plans to cut business rates for around 13,000 smaller “bricks and mortar” shops while raising the amount payable for higher value properties.

The first minister-turned-finance secretary launched a 12-week consultation on proposals to adjust the multipliers for business rates, which are officially known as non-domestic rates.

Research by Aberystwyth Town Council earlier this year revealed that rates in the town are ‘insanely high’ with the cost per square metre almost three times higher than the main shopping street in Swansea.

Former mayor, Cllr Maldwyn Pryse, said: “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.”

Prof Drakeford said the Welsh Government intends to make use of new powers to bring in “differential multipliers” for the first time from April 2026.

He proposed introducing a lower multiplier – a key determinant of bills – for small- to medium-sized retail shops, kiosks and post offices, with a rateable value below £51,000.

“This proposal recognises the unique challenges faced by the ‘bricks and mortar’ retail sector, not least through their exposure to competition from online retailers,” he said.

“It would be intended to help rebalance the non-domestic rates system in favour of retail shops, to support the ongoing viability and sustainability of the sector.”

Prof Drakeford said the Welsh Government also plans to bring in a higher multiplier for the largest properties, with rateable values of more than £100,000.

He wrote: “This would help to offset the revenue … forgone through the proposed retail multiplier and ensure the standard multiplier could be set at the lowest possible level.”

Prof Drakeford added: “The first use of any new powers will highlight practical considerations which inevitably arise in implementing innovative policy action.

“This relatively modest proposal will allow these matters to be identified and resolved, laying the ground for further reform in the future.”

The levels of multipliers will be determined as part of the Welsh Government’s 2026/27 budget.

According to the consultation, the increase in the higher multiplier would offset revenue lost through the retail multiplier – with no change in the overall amount raised.

Around 3,200 properties in Wales would pay rates based on the higher multiplier.

Reacting to the announcement, Cefin Campbell MS, who raised the issue of Aberystwyth’s high business rates in the Senedd, said: “Cefin Campbell, Plaid Cymru Member for the Senedd for Mid and West Wales, said: “The current business rates regime disadvantages smaller businesses on our high streets relative to larger ones out of town.

“The Welsh Government’s consultation is itself an acknowledgement that Plaid Cymru is making headway in terms of policy in this area, and while we welcome the proposals as a first step to reforming our business rates regime, we need clarity on what Welsh Government is proposing in terms of a new multiplier for high street businesses.”