Non-domestic rates stakeholder update: November 2023

This stakeholder update brings together the latest information provided by the Welsh Government on the Non-Domestic Rates (NDR) system in Wales.

Latest updates

Draft budget for 2024-25

The Welsh Government’s spending plans for 2024-25 will be set out when we publish our Draft Budget in December, following the UK Government Autumn Statement on 22 November. We understand that ratepayers will wish to know details of NDR arrangements for next year, including the level of the multiplier. This information will be confirmed alongside the Draft Budget announcement and included in our next update.

NDR reform

On 20 November, the Local Government Finance (Wales) Bill was introduced in the Senedd. The Bill will deliver most of the proposals for NDR reform set out last year in our consultation on NDR reform. 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.

In relation to NDR, the Bill will:

increase the frequency of revaluations to three-yearly;
enable the revaluation cycle to be altered using regulations;
change the way ratepayers provide information to the Valuation Office Agency (VOA), to ensure more frequent revaluations are sustainable in the long-term;
enable the Welsh Government to confer, vary or withdraw reliefs and exemptions, and to prescribe differential multipliers, using regulations;
strengthen the eligibility conditions for charitable relief for unoccupied properties;
remove a timing restriction on the awarding of discretionary relief by local authorities;
expand the definition of a new building for the purpose of the serving of completion notices by local authorities; and
enable the counteraction of advantages arising from artificial avoidance arrangements specified in regulations.

We will provide further information about the implementation of these reforms during and following consideration of the Bill by the Senedd.

The Non-Domestic Rating Act 2023

The Non-Domestic Rating Act 2023 received Royal Assent on 26 October. This Act has been used to bring about certain reforms for Wales at the earliest possible opportunity. The provisions extended to Wales include powers to establish new relief schemes, which were the subject of recent consultations (see below).

Improvement relief

Following consultation, the Welsh Government has announced that a new improvement relief will be provided from 1 April 2024 onwards. The relief will support ratepayers investing in improvements which increase the ratable value of the properties they occupy. It will operate as proposed in the consultation and consistently with the same relief in England. The VOA is working with local authorities to finalise the process for providing certificates for qualifying improvement works. Information for local authorities on this aspect will follow in due course from the VOA. The required legislation will be brought forward in due course.

Support for renewable energy

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 will be in place from 1 April 2024 onwards. These measures are a relief for low-carbon heat networks and 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. They will operate as proposed in the consultation. The required legislation will be brought forward in due course.