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 2025-26
The Welsh Government’s spending plans for 2025-26 will be set out when we publish our Draft Budget in December, following the UK Government Autumn Statement on 30 October. 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.
Local Government Finance (Wales) Act 2024
The Local Government Finance (Wales) Act 2024 (the 2024 Act) received Royal Assent on 16 September. In relation to NDR, the 2024 Act delivers most of the proposals set out in our consultation on NDR reform in 2022.
The previous stakeholder update (July 2024) included further information about the implementation of changes which will take effect two months after Royal Assent of the 2024 Act (now known to be 16 November 2024). These changes are:
- a revaluation in 2026 and every three years thereafter (sections 2 and 3);
- expanding the definition of a new building for the purpose of serving completion notices (section 7); and
- simplifying local authority discretionary relief by removing the timing restriction (section 8).
This update includes further information about the implementation of the change which will take effect on 1 April 2025. This change is:
- strengthening the eligibility criteria for charitable relief for unoccupied properties (section 6).
Charitable relief for unoccupied properties
Full charitable relief is provided for empty properties where the ratepayer is a charity or community amateur sports club (CASC) and all eligibility criteria are met. From 1 April 2025, changes introduced by the 2024 Act will strengthen the eligibility criteria to address the exploitation of this relief for avoidance purposes. We have updated our guidance on relief for empty properties, to provide local authorities and ratepayers with further information about the strengthened criteria and associated evidence requirements.
Charitable relief for private schools
In 2020, we consulted on the eligibility of private schools and hospitals for charitable relief. Following the consultation, we confirmed that we would give further consideration to the policy options and consult further on any specific proposals for change. The Welsh Government has now announced a proposal to withdraw charitable relief from private schools, from 1 April 2025. A consultation on this proposal is open until 16 December 2024.
NDR consultations
All consultations apply to Wales only.
Charitable non-domestic rates relief for private schools – open
A consultation on the proposal to withdraw charitable relief from private schools is 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 January 2025 (provisional).
Useful links:
Welsh Government
Business Wales
Valuation Office Agency
Valuation Tribunal for Wales
Welsh Local Government Association
Senedd Cymru