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 2027-28
The Welsh Government’s spending plans for 2027-28 will be set out when we publish our Draft Budget on 17 November, following the UK Government’s Autumn Budget on 28 October. We understand that ratepayers will wish to know details of NDR arrangements for next year, including the values of the multipliers. This information will be confirmed as part of our budget preparations and included in our next update.
Rebalancing the NDR system
On 15 September 2026, the Cabinet Minister for Finance made a statement in the Senedd on the Welsh Government’s commitment to rebalance the NDR system. From 2027-28, small to medium sized food and drink hospitality (pubs, restaurants, cafés, bars, food courts, licensed clubs and live music venues), visitor accommodation (hotels, guest houses and hostels) and leisure (cinemas, theatres, libraries, museums and gyms) properties will be subject to the lower multiplier currently applied to retail shops. This expanded scope for the lower multiplier will be funded by a marginal increase to the higher multiplier applicable to the highest value properties in the tax-base. The regulations required to give effect to these changes will be brought forward in the coming weeks and, subject to approval of the Senedd, they will come into force on 1 April 2027.
Classification of self-catering properties for local tax purposes
We have announced a review of the 182-day threshold used to classify self-catering properties for local tax purposes and proposed a range of exemptions for properties which could not be used as a private home. Further details are set out in the associated consultation, which is open until 23 October. The legislation required to implement any confirmed changes, following the review and consultation, would be intended to come into force on 1 April 2027.
Electric vehicle charging point parking bays
In some circumstances, electric vehicle charging points and associated parking bays will be subject to stand-alone assessments for non-domestic rates. To delay the onset of the resulting liability, we have announced that full relief will be provided to electric vehicle parking bays and forecourts until 31 March 2036. The relief will initially be provided using the discretionary powers of local authorities and we have published the related guidance. We intend to continue the relief on a statutory basis from 2027-28 to 2035-36. The required regulations will be brought forward in due course and, subject to approval of the Senedd, they will come into force on 1 April 2027.
Provision of information to the Valuation Office
The Local Government Finance (Wales) Act 2024 included provision (section 12) for a new duty on ratepayers to provide information to the HMRC Valuation Office (VO). Ratepayers will need to tell the VO 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.
We have previously confirmed that the duty will not be activated until the VO and the Welsh Government are satisfied that ratepayers can reasonably and efficiently comply using the online service. It was previously confirmed that this would not occur before 2029. The VO has published an update on preparations for the changes, confirming that the timing is under review and that stakeholders will be updated when any action is required.
Statistical bulletin on NDR in Wales
We have published our latest annual statistical bulletin on NDR in Wales. The bulletin includes data on the amount of NDR collected and reliefs provided, up to and including the 2024-25 financial year. We welcome any feedback from stakeholders.
NDR consultations
All consultations apply to Wales only.
Classification of self-catering properties for local tax purposes – open
A consultation on proposed changes to the treatment of self-catering properties for local tax purposes is open for twelve weeks, from 31 July to 23 October 2026.
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 January 2027 (provisional).
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