Businesses around Wales have been given a boost after Economy Minister Edwina Hart announced a £15m package to cut business rates bills.

This includes an £11.5m funding package to help cut rates bills for retailers and food and drink premises.

The Wales Retail Relief Scheme will provide £1,000 discount on the business rates bill to all qualifying retail premises with a rateable value of less than £50,000. Grant funding will be made available to local authorities to operate the scheme in their area in 2014-15.

The Minister has also announced an additional £3.5m fund for local authorities to provide additional, targeted rates relief. It will give local authorities the flexibility to use their local knowledge to provide rates relief support to other businesses that have been negatively affected by the postponement of revaluation.

This ‘local need’ scheme is unique to Wales and local authorities will determine the criteria against which reliefs will be awarded. Businesses should contact their local authority for more information.

David Russ, managing director of the South Wales Chamber of Commerce, said: “While the entire business rates system is in desperate need of wider reform, this announcement of a £15m package to cut business rates is extremely welcome. It will not only bring our system in line with England but will also provide vital assistance to small businesses in Wales.

“Traditional high streets and central business districts are facing enormous challenges and are fighting for survival within the British retail sector. In recent years, there has been a significant decline in town centres and this package will help to regenerate those areas which have been hardest hit. The £11.5m of the package, which is aimed at retailers and food and drink premises, will help to stimulate growth in the local retail market, breathing life back into the Welsh high street and ultimately encouraging people back into town centres for retail and leisure activities.

“Similarly the remainder of the funding, which is being given to local authorities, is a positive step in support of entrepreneurship and should help to stimulate new business start-ups, particularly at SME level.”

Wales Retail Relief can be provided in addition to Small Business Rates Relief and relief provided under the Open for Business Scheme as well as any hardship or discretionary relief awarded by the local authority.

The Minister said: "Together these support packages will provide assistance to many businesses during this current economic situation and also inject money into the Welsh economy and support jobs. It goes beyond assisting retailers and forms part of the package of Welsh Government aid aimed at supporting Wales’ high streets and shopping areas to become more sustainable in what is currently a rapidly changing retail environment."