An extra £1.5 billion to strengthen public services, support small businesses and drive economic growth is at the heart of the Welsh Government’s Draft Budget 2025-2026.
Capital spending plans will exceed £3 billion for the first time at the Draft Budget stage, enabling substantial investments in the school estate, NHS infrastructure, housing and public transport.
To support Welsh businesses, the non-domestic rates multiplier will be capped at 1% for 2025-2026 and retail, leisure and hospitality businesses will continue to receive 40% relief towards their bills. In total £335 million will be spent on non-domestic rates support in 2025-2026.
Welsh Rates of Income Tax will remain unchanged – Welsh income taxpayers will continue to pay the same rates as people in England and Northern Ireland.
But the Draft Budget does include a number of other tax measures, which will raise funding to support businesses and public services and help support Wales’ ambitions to recycle more waste.
From 11 December 2024, the higher residential rates of Land Transaction Tax applying to purchases of additional residential properties will increase by 1%, raising an estimated additional £7 million in 2025-2026. This change is broadly in line with changes made to Stamp Duty Land Tax in England and Northern Ireland.
The standard rate of Landfill Disposal Tax will rise to £126 and to £6.30 per tonne for the lower rate to help reduce the amount of waste sent to landfill and encourage more recycling.
To read the Welsh Government's statement in its entirety, please select the following link: A budget to build a brighter future for Wales | GOV.WALES