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 2024-25
As part of the Welsh Government Draft Budget for 2024-25, it was announced that:
- The increase in the NDR multiplier for 2024-25 will be capped at 5%, resulting in a multiplier of 0.562 (subject to approval by the Senedd of the required regulations). This is lower than the 6.7% increase that would otherwise apply from the default inflation of the multiplier in line with CPI and will benefit all ratepayers who do not already receive full relief.
- Retail, leisure and hospitality businesses will receive 40% NDR relief for the duration of 2024-25, subject to a cap of £110,000 per business across Wales. We have published guidance on Retail, Leisure and Hospitality Rates Relief for 2024-25, which follows the same model as the scheme for recent years.
NDR Reform
Following introduction on 20 November 2023, the Local Government Finance (Wales) Bill is being considered by the Senedd. The Bill will deliver most of the proposals for NDR reform set out in our consultation on NDR reform in Autumn 2022. These proposals include more frequent revaluations and measures required to deliver them, as well as wider improvements to enable the Welsh Government to better adapt the NDR system to meet the needs of Wales.
Further information about the Bill and its progress through scrutiny is available on the Senedd website. We will provide further information about the implementation of these reforms during and following consideration of the Bill by the Senedd.
The remainder of this update reminds stakeholders of more immediate changes to the NDR system in Wales, all of which are taking effect from 1 April 2024.
Improvement relief
Following consultation, the Welsh Government has announced that a new improvement relief will be provided to support ratepayers investing in improvements which increase the ratable value of the properties they occupy. The Non-Domestic Rating (Improvement Relief) (Wales) Regulations 2023 have been since been made law and will come into force on 1 April 2024. We have published guidance on improvement relief.
Heat networks relief
Following consultation, the Welsh Government has announced that new measures to support the use of renewable energy and the decarbonisation of heat in non-domestic properties. These include a relief for low-carbon heat networks. The Non-Domestic Rating (Heat Networks Relief) (Wales) Regulations 2024 have since been made law and will come into force on 1 April 2024. We have published guidance on heat networks relief.
Renewable plant and machinery exceptions
The new measures to support the use of renewable energy also include an exception from rating assessments for the properties they are part of, for plant and machinery used in onsite renewable energy and electric vehicle charging points. The Valuation for Rating (Plant and Machinery) (Wales) (Amendment) Regulations 2023 have since been made law and will come into force on 1 April 2024. The Valuation Office Agency is responsible for implementation of the changes.
NDR consultations
There are not any currently open or recently closed (since the last update) Welsh Government consultations on NDR.
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 Summer 2024 (provisional).
Useful links:
Welsh Government
Business Wales
Valuation Office Agency
Valuation Tribunal for Wales
Welsh Local Government Association
Senedd Cymru