Debenhams may have to shut branches in Wales unless the government changes its stance on business rates.

The Welsh government has changed its stance on rates relief. It had been offered to all businesses by chancellor Rishi Sunak, but in Wales the threshold for eligibility was changed in order to support small businesses, the BBC reported.

But Debenhams chair Mark Gifford warned that the decision jeopardises the future of branches in Cardiff, Llandudno, Newport, Swansea and Wrexham.

Gifford said in a letter to Welsh finance minister Rebecca Evans: “It is deeply regrettable that, by electing to take a different approach to that taken elsewhere in the UK, you have made it economically unviable for us to continue trading the majority of our Welsh business.

“You have failed to understand the situation, where Debenhams Retail Limited is in administration and will cease to pay business rates unless it chooses to reopen its stores in Wales.

“It will be unable to reopen its stores unless you reverse your decision.”

A Welsh government spokesperson told the BBC: “We decided to limit the Non-Domestic Rates Relief for the hospitality, retail and leisure sector announced to exclude the small proportion of properties with a rateable value of over £500,000.

“This affects fewer than 200 properties across Wales, but releases more than £100m towards our Economic Resilience Fund – enough to support more than 2,000 businesses with grants of £50,000.”

The threat to the Welsh stores came just weeks after Debenhams said it would shut seven branches as part of its restructuring programme.

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