A business rates software error has left 374 Anglesey businesses facing higher non-domestic rates bills
Anglesey Council is preparing itself for a wave of calls from distressed business owners facing higher rates bills as a result of a software blunder. Small businesses across the county are already under considerable strain, with one owner describing the mistake as “another nail in the sector’s coffin”.
Rob Harman, who runs two Gaerwen-based businesses, warned he may be forced to cut staff hours and scale back community sponsorships. His rates for one of his companies, Hardcore Fitness Centre, have already doubled to £5,000 this year following a reconfiguration of the small business rates system.
Letters have been dispatched to 374 businesses notifying them that non-domestic rates demands issued earlier this year were “incorrect”. This was due to software incorrectly calculating the amount of transitional relief available, meaning that more relief was awarded than should have been. As a result, these demands will be re-issued, resulting in higher charges. Figures will vary between businesses, which will discover the full impacts.
Affected firms may be granted up to 12 months to settle any outstanding balances. Make sure you never miss Wales’ biggest updates by getting our daily newsletter
The local authority told North Wales Live: “The council regrets that the billing error was not identified before bills were issued, but has acted to notify affected businesses as soon as possible and is working with ratepayers to minimise any financial impact arising from the correction.”
Anglesey council confirmed it isn’t the only local authority facing this predicament, with councils throughout Wales and England similarly affected. Inviting businesses to ring and discuss the ramifications, Anglesey Council acknowledged the error will impose “financial pressures” on those impacted.
However, the local authority cautioned proprietors against aggressive behaviour when telephoning for information. In its correspondence, the council stated: “If you do call, please ensure you are courteous and respectful towards staff members dealing with your call. The council will not tolerate any incidents of abuse and harassment. If this happens, staff have been instructed to end the call immediately.”
Anglesey is home to approximately 2,640 businesses, of which roughly 230 are classified as small businesses. The overwhelming majority – around 2,390 – are micro businesses, most receiving 100% Small Business Rate Relief.
Mr Harman indicated the software glitch will force him to consider making cutbacks at his Gaerwen gym. The facility launched a decade ago and takes pride in supporting the local community through sponsorships and waived fees.
He told North Wales Live: “It’s a crazy situation. The council doesn’t seem to care about small businesses. We are struggling, we need help. We will have to look at ways reducing costs right across the business, perhaps by cutting hours for staff.
“Some people might say we should just increase gym session charges by £5. But a lot of people in our community simply wouldn’t be able to afford it. All the time they are driving more nails into the coffin of the small business sector.”
Hardcore Fitness Centre sponsors kits for two junior rugby teams and a football team. It also backs athletes and boxers, and raises money for kids in need.
Furthermore, veterans and serving Armed Forces personnel are permitted to train at the gym free of charge. This may now be subject to review.
“We will have to look at that,” admitted Rob. “We have around a dozen regulars where the £15 session charges are waived – that equates to around £150 to £200 per month.
“We also sponsor the Llangefni junior teams, which may have to end. We don’t want to stop but we need to protect the staff, without whom there would be no gym.”
Non-domestic rates (NDR) across Wales have risen sharply this year owing to a combination of sector-based multipliers and the scrapping of pandemic-era support schemes. All commercial properties in Wales were also reassessed from April 1, 2026.
To cushion businesses against sudden hikes following these reassessments, the Welsh Government introduced a transitional rate relief scheme. Operating on a sliding scale, liabilities will increase to 100% by 2028–29.
Cardiff has committed £116m over two years to finance the scheme. Mr Harman argued his gym cannot compete on equal terms.
“We don’t make a lot of money at the gym – it’s not subsidised like council facilities,” he said.
“David Hughes Leisure Centre (in Menai Bridge) has just had half a million for new equipment and now the council is looking to refurbish Llangefni Leisure Centre. It makes it really difficult for us to compete.”
Anglesey Council emphasised its function is to administer and collect NDR on behalf of the Welsh Government – it bears no responsibility for determining rateable values, relief schemes or the overall taxation level.
A spokesperson stated: “The council relies on specialist software to calculate bills based on the new valuations and relief arrangements.
“Following the issue of 2026/27 bills, it became apparent that the level of transitional relief awarded to some ratepayers had been calculated incorrectly, resulting in some businesses initially receiving more relief than they were entitled to. As a result, revised bills are being issued.
“This issue is not unique to Anglesey. We understand that a number of other local authorities using the same software system may also have been affected, although we cannot comment on the position of individual councils.
“We recognise that a revised bill may create financial difficulties for some businesses. Rather than simply issuing amended bills and increasing monthly instalments immediately, the council has written to affected ratepayers first to explain the situation.
“Businesses are encouraged to contact us if they have concerns about paying the revised amount. While business rates liabilities are set within a statutory framework, the council is willing to agree payment arrangements and, where appropriate, allow businesses up to 12 months from the issue of the revised bill to pay any outstanding balance.”

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