Non-domestic rates stakeholder update: February 2022

Latest updates

Announcements from the Draft Budget for 2022-23

Following publication of the Welsh Government Draft Budget for 2022-23, it was announced that:

• Retail, leisure and hospitality businesses in Wales will receive 50% NDR relief for the duration of 2022-23. Like the scheme announced by the UK Government, the Welsh Government’s Retail, Leisure and Hospitality Rates Relief scheme will be capped at £110,000 per business across Wales.
• The NDR multiplier will remain frozen in Wales for 2022-23, at 0.535. The multiplier is an integral part of determining ratepayers’ bills. This decision will ensure, prior to applying any reliefs, that there will be no increase in the amount of rates which businesses and other ratepayers pay during the next financial year.

Retail, Leisure and Hospitality Rates Relief scheme for 2022-23

Following the Draft Budget announcement, we have published guidance for local authorities on the Retail, Leisure and Hospitality Rates Relief scheme for 2022-23. The inclusion of the £110,000 cap in relief per business, across Wales, means that local authorities will not be able to automatically apply the relief to ratepayers’ bills. Eligible businesses will be required to apply to their local authority for relief and declare that the total amount of relief being claimed from authorities across Wales does not exceed £110,000.

Tackling fraud and avoidance

In 2018, the Welsh Government announced a package of measures to tackle NDR fraud and avoidance in Wales. We have already been implemented many of these, with further changes taking effect in April 2022, or planned for the future.

We remind stakeholders that, following consultation, the Non-Domestic Rating (Unoccupied Property) (Wales) (Amendment) Regulations 2021 will come into force on 1 April 2022. The regulations tackle the misuse of empty property relief, by extending (from 6 to 26 weeks) the period properties must be occupied, before receiving subsequent periods of relief. Local authorities should consider any system changes required to reflect this amendment, if they have not done so already.

Later this year, the Welsh Government intends to consult on the implementation of further measures announced in 2018, which, from 1 April 2023, will provide the following:

• A new legal obligation on ratepayers, to notify their local authority of a change in circumstances which would affect their rates bills.
• A new legal power for local authorities to request information from ratepayers and third parties, to aid authorities in discharging the billing and collection function. 

NDR consultations

All consultations apply to Wales only.

Central rating list for the non-domestic rates revaluation 2023 – open

A consultation on proposed changes to the central rating list is open for twelve weeks, from 21 January to 15 April 2022.

Further information

We welcome feedback on this stakeholder update. Any comments or enquiries should be directed to: localtaxationpolicy@gov.wales

The next update is planned for April 2022 (provisional).

Useful links:

• Welsh Government 
• Business Wales
• Valuation Office Agency
• Valuation Tribunal for Wales
• Welsh Local Government Association
• Senedd Cymru