This stakeholder update brings together the latest information provided by the Welsh Government on the Non-Domestic Rates (NDR) system in Wales.
Latest updates
Announcements from the Draft Budget for 2023-24
As part of the Welsh Government Draft Budget for 2023-24, it was announced that:
- The NDR multiplier will remain frozen in Wales for 2023-24, at 0.535. The multiplier is an integral part of determining ratepayers’ bills and the Welsh Government’s decisions to maintain the multiplier at 0.535 protects ratepayers from the effects of inflationary increases. Individual bills may increase, decrease or remain the same, as a result of the NDR revaluation taking effect on 1 April 2023.
- Transitional relief will limit increases in NDR bills, as a result of the revaluation. An eligible ratepayer will pay 33% of their additional liability in the first year (2023-24) and 66% in the second year (2024-25), before reaching their full liability in the third year (2025-26).
- Retail, leisure and hospitality businesses in Wales will receive 75% NDR relief for the duration of 2023-24. 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. We will publish guidance on the scheme for 2023-24 in due course.
Revaluation 2023 – transitional relief
Preparations are underway for new rating lists to be introduced in Wales, as a result of revaluation, from 1 April 2023. A revaluation comprises the review of the Rateable Value (RV) of all non-domestic properties, by the Valuation Office Agency (VOA), at a particular point in time. Every non-domestic property will be assigned a new RV, based upon its estimated annual rental value as at 1 April 2021. The VOA have published a draft of the new rating list. Further information about the 2023 revaluation can be found on the VOA website. If ratepayers have questions about their valuations, they should contact the VOA.
Revaluation is carried out to maintain fairness in the NDR system, by redistributing the total amount payable between ratepayers, to reflect relative changes in the property market. This means that, for an individual ratepayer, it is not only the change in the RV of their own property which will determine their NDR liability. Some ratepayers will see their bill increase, some will see a decrease, and some may not see any change, reflecting relative changes in the property market across the tax base.
We have published guidance on the transitional relief scheme. The relief will limit increases in bills, as a result of the revaluation, for all ratepayers with an increased liability of more than £300. Increases in liability will be phased-in over two years, in accordance with the Non-Domestic Rating (Chargeable Amounts) (Wales) Regulations 2022. The Regulations prescribe rules to calculate the chargeable amount for eligible ratepayers. Transitional relief will be automatically applied to bills.
NDR consultations
All consultations apply to Wales only.
Reforming non-domestic rates for Wales – closed
A consultation on a range of proposals for the reform of NDR over the remainder of the Senedd term was open for twelve weeks, from 21 September to 14 December 2022. Responses are currently being analysed and a summary will be published in due course.
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 March 2023 (provisional).
Useful links:
Welsh Government
Business Wales
Valuation Office Agency
Valuation Tribunal for Wales
Welsh Local Government Association
Senedd Cymru