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 2025-26
As part of the Welsh Government Draft Budget for 2025-26, it was announced that:
- The increase in the NDR multiplier for 2025-26 will be capped at 1%, resulting in a multiplier of 0.568 (subject to approval by the Senedd of the required regulations). This is lower than the 1.7% 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 2025-26, subject to a cap of £110,000 per business across Wales. We have published guidance on Retail, Leisure and Hospitality Rates Relief for 2025-26, which follows the same model as the scheme for recent years.
NDR reform
Previous stakeholder updates included information about the changes arising from the Local Government Finance (Wales) Act 2024 (the 2024 Act) which have already taken effect or will take effect on 1 April 2025.
Section 12 of the 2024 Act will place a new duty on ratepayers to provide information to the Valuation Office Agency (VOA). This will support the delivery of more frequent revaluations. Ratepayers will need to tell the VOA about certain changes to their property and will need to confirm their information is up to date each year. This will be done through a new online service.
The new duty will be introduced after 1 April 2026. The online service will be tested with small numbers of users in phases, so the VOA can ensure that it works for all ratepayers. The duty is then expected to be formally activated and mandated for all ratepayers by 1 April 2029.
The duty will not be activated until the VOA and the Welsh Government are satisfied that ratepayers can reasonably and efficiently comply using the online service. The VOA has published an update with more information about the changes and timeline for implementation.
Relief for registered childcare providers
Since April 2019, registered childcare providers have received full (100%) Small Business Rates Relief (SBRR). This enhancement of SBRR was initially provided for a three-year period and subsequently extended for a further three years. The Welsh Government has confirmed that this support has been made permanent.
Charitable relief for private schools
Following consultation, the Welsh Government has confirmed that we will withdraw charitable relief from private schools. This will bring private schools which are charities in line with other private schools for NDR purposes. The Non-Domestic Rating (Withdrawal of Relief for Independent Schools) (Wales) Regulations 2025 will, subject to approval of the Senedd, be made law come into force on 1 April 2025.
NDR consultations
All consultations apply to Wales only.
Charitable non-domestic rates relief for private schools – summary of responses
A consultation on the proposal to withdraw charitable relief from private schools was open for twelve weeks, from 23 September to 16 December 2024.
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 2025 (provisional).
Useful links:
Welsh Government
Business Wales
Valuation Office Agency
Valuation Tribunal for Wales
Welsh Local Government Association
Senedd Cymru