Key Points
- FSB Wales has written to Adam Price MS, the newly appointed Cabinet Minister for Enterprise, Connectivity and Energy, asking for early action to support small businesses.
- The group wants the Welsh Government to introduce a dedicated Retail, Hospitality and Leisure multiplier and to raise the Small Business Rates Relief threshold.
- FSB says small and medium-sized businesses make up 99.3% of Welsh businesses, 62.3% of private sector employment, and 42.5% of turnover.
- The organisation says rising costs, including employment, rates, and energy, are still weighing on firms, even though more than half of small businesses in Wales have growth ambitions.
- John Hurst, FSB Wales Chair, said policies should be judged by whether they help small businesses invest, recruit and win work.
Wales Local(Wales Times)May 13, 2026 – FSB Wales has called on Adam Price MS to move quickly on business support measures, arguing that small firms need more fiscal breathing room if they are to grow, hire staff, and compete effectively.
As reported by Business News Wales, the federation said the new cabinet minister should treat small business support as a priority because SMEs remain central to the Welsh economy. The organisation said that, despite years of cost pressure, many small firms still want to expand if government policy gives them more certainty.
The appeal comes at a time when the Welsh Government is under pressure to respond to business rates concerns and wider cost-of-living pressures affecting employers. FSB Wales argues that support should focus not only on rates relief, but also on helping small firms access public contracts more easily.
Why rate relief matters
FSB Wales is pressing for a dedicated Retail, Hospitality and Leisure multiplier, saying those sectors face particular pressure from operating costs. The group also wants the Small Business Rates Relief threshold increased, which it believes would give firms more room to invest and keep staff.
The federation’s argument is that rate policy should help viable businesses survive and grow rather than adding to their costs. It says this is especially important for local economies, where small firms are often major employers and spenders.
According to official UK guidance, small business rate relief is available when a property’s rateable value is below certain thresholds, with full relief applying to some properties valued at £12,000 or less. That makes the threshold level a practical issue for many smaller firms, especially those operating from a single premises.
What FSB Wales said
John Hurst, FSB Wales Chair, said small firms are ready to contribute more to the economy if the right conditions are in place. He said providing “fiscal breathing room” through rates relief and removing barriers to procurement would increase confidence.
He also said the minister should test every policy against a simple question: does it help small businesses invest, recruit and win work? The FSB says this approach would support sustainable growth and strengthen local economies across Wales.
The federation also pointed to the scale of the SME sector, saying it dominates the Welsh business landscape. That is why, in its view, small business policy has wide consequences for jobs, turnover, and community-level economic activity.
What this means for Welsh firms
The message from FSB Wales is essentially that small businesses want policy stability more than short-term intervention. It is asking ministers to look at business rates, access to contracts, and wider strategy together, rather than as separate issues.
For retailers, hospitality operators, and leisure firms, the key issue is whether the Welsh Government will offer targeted support that reduces operating pressure. For other SMEs, the broader concern is whether the new minister will create conditions that help them expand rather than absorb higher costs.
The request also reflects a wider debate in Wales about how to support local enterprise while public finances remain tight. Any decision on relief thresholds or sector-specific multipliers could affect not only business bills, but also hiring plans and investment decisions.
Background of the development
The background to this development is the continuing debate over Welsh business rates and the treatment of small firms in the tax system. Rates relief is designed to reduce the burden on smaller properties, but business groups have argued that thresholds and sector rules need updating to reflect current cost pressures.
FSB Wales has repeatedly called for stronger support for SMEs, including reforms linked to retail, hospitality, and leisure businesses. Its latest intervention follows the appointment of Adam Price, MS, to a senior economic portfolio, giving the federation a fresh opportunity to press its case directly.
Prediction
For small businesses in Wales, the most immediate effect of this campaign is likely to be renewed pressure on ministers to review rates support and SME policy. If the government responds positively, firms in retail, hospitality and leisure could see more certainty around costs and investment planning.
For workers and local communities, any change that helps small firms stay viable could support jobs and local services. If no changes follow, business groups are likely to continue arguing that the current rate policy places too much strain on smaller employers.
