BUSINESSES facing sharp hikes in tax bills after the 2026 revaluation will see increases phased in over two years after the Senedd backed a new transitional relief scheme.

Senedd Members unanimously approved regulations to help businesses which face significant rises in non-domestic rates bills after a revaluation taking effect in April 2026.

The Welsh Government estimates the transitional relief will support 25,000 ratepayers at a cost of £77m in 2026/27 and £39m in 2027/28. The partial relief covers 67% of the increase in the first year and 34% in the second.

Mark Drakeford, Wales’ finance secretary, stressed the £116m scheme comes on top of permanent rate reliefs which are currently worth £250m a year. He said ratepayers for two-thirds of properties will pay no bill at all or receive some level of relief.

The former First Minister told the Senedd: “In providing this transitional relief scheme, we are closely replicating the scheme of relief we provided following the 2023 revaluation – supporting all areas of the tax base in a consistent and straightforward manner.”

The Conservatives’ Sam Rowlands expressed his party’s support for the transitional relief scheme which will help ratepayers facing sharp increases after the 2026 revaluation.

He said: “We are grateful that the Welsh Government has at least brought forward a scheme that will soften the immediate impact for thousands of Welsh businesses.

“We also understand that if these regulations are not approved or supported… this relief scheme will not be in existence. Many businesses across Wales would face steep increases with no protection at all and that is certainly not an outcome we would want.”

But the shadow finance secretary warned businesses up and down Wales are worried about the increase in rates that they are liable to pay.

Advocating scrapping rates for all small businesses in Wales, Mr Rowlands said: “We’ve heard first-hand from many of those in the hospitality and leisure sector, some of whom are facing increases of over 100% in the tax rates they are expected to pay.”

Responding as the Senedd signed off on the scheme on December 16, Prof Drakeford said the Welsh Government had to wait for the UK budget to know if funding was available. As a result of the time constraints, the regulations were not subject to formal consultation.

Prof Drakeford agreed with Mr Rowlands that voting against the regulations would not improve support, only eliminate the transitional relief package before the Senedd.

Earlier in Tuesday’s Senedd proceedings, former Tory group leader Paul Davies warned Welsh businesses have already been hit with some of the highest business rates in the UK.

He said: “The latest business rates revaluation has meant that some businesses are now facing rises of several hundred per cent compared with previous assessments…

“Whilst I appreciate that a transitional relief scheme will help some businesses manage these changes, the reality is that for many businesses it’s not enough and some businesses will be forced into a position where they will have to close.”

SENEDD Members will secure pay rises ranging from £12,000 to £25,000 in the next term starting in May, compared with salaries paid after the previous election in 2021.

The Senedd’s independent remuneration board has confirmed the base salary for politicians will be £79,817 after the 2026 election, up from £67,694 at the start of term. Members’ pay was frozen in 2020/21 and rises have since been linked to an index of average earnings.

Politicians who hold additional offices will see even larger leaps. The First Minister was paid £147,983 five years ago but the salary will be £173,600 in 2026 – more than £25,000 higher.

Cabinet ministers will earn £124,713, an increase of £19,000 on 2021, while deputy ministers’ pay will rise by more than £16,000 to £106,008.

Pay for the speaker or Llywydd will go from £110,987 to £130,949 between the start of the sixth and seventh Senedd terms. Meanwhile, the deputy speaker’s wages will grow from £89,846 to £106,008 and Senedd commissioners will earn £96,029 – up from £81,390.

Committee chairs will also earn £96,029 following a rise in excess of £14,000. Opposition group leaders are set to receive at least £96,029 too, up from £81,390. This figure rises by £1,248 for every extra party member, up to a maximum salary of £124,713.

Even with the increases, the new base salary of £79,817 remains significantly lower than in Westminster where MPs currently earn £93,904.

But Senedd politicians’ current pay of £76,380 outstrips that of counterparts in Scotland (£74,507) and Northern Ireland (£53,000). Scotland, Northern Ireland and Westminster are yet to publish comparable details of pay for 2026/27.

With the Senedd expanding from 60 to 96 members in May, the remuneration board confirmed projected costs of the additional politicians will exceed £40m over three years.

The total cost of the 36 extra members – including salaries, support staff and office costs – is forecast at £12.7m in 2026/27, rising to £14.3m by 2028/29.

Consequently, the total annual cost for all 96 members will reach £38.3m by 2028/29 compared with the current financial year’s £20.8m bill for 60 politicians.

Nearly two-thirds of the overall increase in pay between 2021 and 2026 has come in a little over a year after the remuneration board scrapped a 3% cap on rises for politicians.

Senedd Members received a 6% increase in April 2025 and will receive a further 4.5% in May 2026. This combined rise outstrips projected inflation of about 6% for the period.

The remuneration board spent five years and £115,000 on external expertise for a staff pay and grading review. A wider review of the “determination”, which sets politicians’ pay as well as budgets for travel and accommodation, was done by the board itself.

The board argues the increases reflect the growing responsibilities of Senedd Members, who now hold significant tax and law-making powers compared with previous terms. It has also stressed that fair remuneration is vital to attract a diverse range of candidates.

On December 15, the board opened a consultation on parts of the determination. However, key decisions on salaries will not be revisited and politicians do not get a vote on their pay.

Elizabeth Haywood, who chairs the remuneration board, said a simplified draft determination for next term reflects a commitment to clarity, fairness and transparency.

“We have gathered extensive evidence and taken on board a range of views and already conducted two public consultations during this process,” said Dr Haywood.

“Our aim is to ensure that members and their staff are equipped to meet the challenges of the seventh Senedd – with more members, new constituency arrangements and evolving ways of working.

“As the Senedd changes, our priority remains to provide appropriate support whilst providing value for money.”

THE WELSH Government has taken a major step towards making Wales the first nation in the UK to ban greyhound racing after winning a key vote.

Senedd Members voted 36-11, with three abstentions, to support the general principles of the greyhound racing bill on December 16, paving the way for the sport to be outlawed by April 2030. However, the bill will be subject to further votes before becoming law.

Huw Irranca-Davies, the Deputy First Minister who is responsible for animal welfare policy in Wales, told Senedd Members the welfare of greyhounds must remain paramount.

“It is about protecting the lives and welfare of greyhounds in Wales,” he said. “Greyhound racing around a track poses an inherent risk of high-speed collisions, falls and injuries.

“Bringing this to an end… will keep animals safer. This bill shows we are a progressive nation committed to ethical standards, animal welfare and forward-thinking legislation.”

He said officials will continue to monitor the social and economic impact, including the effect on the Valley Greyhound Stadium – Wales’ last remaining track in Ystrad Mynach.

Mr Irranca-Davies, who visited the stadium in November, added that work is under way to ensure targeted support for workers before the bill comes into force.

The Deputy First Minister told Senedd Members: “I took the opportunity to listen to the concerns from trainers, track managers and other industry representatives.”

He argued the likelihood of racing going underground was low, telling the Senedd he had accepted most of the recommendations on the bill made by scrutiny committees.

Delyth Jewell, who chairs the Senedd’s culture committee which has been examining the bill, expressed concerns about the “accelerated” window for scrutiny. “We hope the reduced timetable followed for this bill will not set precedents,” she said.

Ms Jewell said opponents accepted injuries to greyhounds happen but argued that welfare has improved under regulation, warning of racing moving underground or across borders.

She raised evidence from supporters who suggested these measures cannot address the inherent dangers of racing dogs where “catastrophic injuries are at times unavoidable”.

She stressed that the available data on welfare measures and injuries is highly contested.

Ms Jewell expressed her personal view that the bill should be agreed during the stage-one debate despite “shortcomings” in the legislative process.

The Plaid Cymru deputy leader said: “Nobody, in giving evidence, contested the fact there will always be predictable and unavoidable harms that are inherent to greyhound racing.”

She added: “Compassion should be our compass and the law should reflect that.”

Mike Hedges, who chairs the Senedd’s legislation committee, warned of a lack of consultation and said relevant impact assessments have not all been completed.

The Conservatives’ Gareth Davies, who visited the Valley track last week, recognised welfare concerns but he voted against the bill, suggesting a ban was disproportionate.

Mr Davies said: “I saw, first hand, the kennels the dogs were kept in which were of a very high quality and I was satisfied that the industry is, rightly, more than willing to comply with the very high standards of animal welfare regulation.”

He was pressed by Labour’s Carolyn Thomas about his support for a sport which sees dogs “suffering life-ending or life-altering injuries in the name of gambling and entertainment”.

Mr Davies warned the bill had been rushed through, with “clear evidence that injury rates have fallen to historic lows under the current regulatory framework”.

Llŷr Gruffydd explained he would not support the principles of the bill, breaking with most of his Plaid Cymru colleagues, due to the “highly contested” evidence base. “A strong ethical basis alone doesn’t necessarily make good law,” he said.

Mr Gruffydd told the Senedd the bill was introduced without an evidence base, without comprehensive public engagement and without complete impact assessments.

Raising the risk of unintended consequences, he pointed out dogs could still be kept in Wales and raced in England – “increasing travel distances and welfare risks”.

Mr Gruffydd warned the bill falls short, saying: “We all share the goal of improving animal welfare but good intentions don’t always deliver good legislation.”

Conservative James Evans echoed these concerns as he argued against a ban, warning politicians were being placed in an “impossible position” without the necessary evidence.

Jane Dodds, leader of the Liberal Democrats in Wales, struck a budget deal with the Welsh Government last year which led to the introduction of the greyhound racing bill.

Ms Dodds, who has owned rescue greyhounds, said: “These are animals that have been raced, they have been cruelly treated and I’m not going to milk that word: it is cruel.” She paid tribute to the Cut the Chase charity coalition which has campaigned for change.

Labour’s Lesley Griffiths, John Griffiths and Carolyn Thomas; Plaid Cymru’s Siân Gwenllian and Luke Fletcher; and the Conservatives’ Altaf Hussain similarly spoke in support of a ban.

Mr Hussain told the Senedd: “Dogs are being subjected to horrendous injury and death… to maximise profits for the multi-billion-pound betting industry… enough is enough.”

The bill now moves to the next steps – consideration of detailed amendments by the culture committee then the whole Senedd – before a final stage-four vote.

Mark Bird, chief executive of the Greyhound Board of Great Britain which has launched a legal challenge to the plans, said the process showed the Senedd in the worst possible light.

Following the debate, he criticised a “dodgy backroom deal” and an “indefensible policy sham” which ignores the “condemnation and objections” of Senedd scrutiny committees.

Mr Bird warned: “This is neither good government nor good politics. This bill will do nothing to serve the priorities of the Welsh public, economy or animal welfare.

“Rather every instance of animal use in Wales – from horseracing to livestock farming – should prepare to be the next target of the animal rights movement and its political lackeys.”

He added: “Wales is sleepwalking into the arms of an animal rights future that no one has voted for and which ignores common sense, factual evidence and proper process.”

A spokesperson from the Cut the Chase Coalition – made up of Blue Cross, Dogs Trust, Greyhound Rescue Wales, Hope Rescue, and the RSPCA – said: “Today’s vote is so important and marks the latest step in what we hope will be the final lap for a pastime which is outdated, and puts animals at unnecessary risk. 

“In backing the legislation’s general principles, MSs have made a clear statement that the risks greyhound racing continues to pose to dog welfare are simply not defendable in the interests of sport or entertainment.

“Across the UK, the industry’s own data shows the thousands of injuries that have occurred in recent years as a result of racing, while hundreds of dogs have lost their lives.

“Ending greyhound racing is the only way to protect dogs from such avoidable and unnecessary risk; and MSs have today voted in line with public opinion after tens of thousands of people signed a petition urging the Welsh Government to take action.

“In the months ahead, we look forward to continuing to work with MSs as this legislation progresses… to ensure Wales joins the growing list of nations worldwide where greyhound racing has been consigned to where it belongs – the history books.”