Non-domestic rates differential multipliers: equality impact assessment 1 April 2027

A. Proposal

1. Title of proposal

Non-domestic rates differential multipliers

2. What is your proposal aiming to achieve? 

The proposal aims to rebalance the non-domestic rates system to support businesses that play an important role in vibrant high street and town centre economies.

3. When did work start on the proposal?

May 2026

4. Which organisations, groups or communities are likely to be affected?

Affected businesses and other organisations occupying non-domestic property.

B. Impact on, and engagement with, people in protected groups 

Age

1. What evidence is available and what is its source? Include the findings from any engagement. 

As non-domestic rates multipliers affect the costs faced by owners and occupiers of non-domestic property, the impacts are generally upon businesses and other organisations, rather than individuals.

There may also be indirect impacts on employment within the retail, food and drink hospitality, visitor accommodation and leisure sectors, if reduced costs result in increased staffing. The 2021 Census provided data on employment by age and sector. A larger proportion of those employed in these sectors are younger (aged 16-24), more than double the average (26% vs 11%), whilst the comparative employment for age groups 35-44, 45-54, and 55-64 is marginally lower.

The policy is also expected to provide indirect positive impacts for some disadvantaged areas and people, including those affected by digital exclusion, who are particularly reliant on access to local businesses. Although digital exclusion has improved (reduced) in recent years, with 4% of the population in Wales not using the internet, older people are more likely to be excluded.

2. Is any evidence unavailable or uncertain? 

It is not possible to assess any indirect impacts of reduced costs for relevant businesses on age related considerations (i.e. in relation to employment of younger people or digital exclusion of older people), as these will be highly context specific and also affected by numerous other factors.

3. Who have you engaged with, why and how? 

Engagement with stakeholders in relation to differential multipliers was undertaken as part of the consultation undertaken by the previous Welsh Government, prior to their first introduction in 2026-27. This enabled those affected or with views on differential multipliers and their potential impacts to respond. No views relating to age were raised during this process.

4. How has evidence affected your proposal?

The proposal to amend the differential multipliers has not been affected by any evidence related to age. Evidence related to digital exclusion was considered when the lower multiplier was originally introduced for retail and this remains relevant, particularly in relation to that sector.

5. What are the likely impacts of the proposal? 

There are no anticipated direct impacts relating to age as a result of this proposal. There may be indirect positive impacts for younger people if reduced costs for ratepayers promote employment, but any such impacts will be highly context dependent and not possible to isolate from other factors. Support which benefits eligible business, particularly physical retail shops, is expected to help limit the impact of digital exclusion on older people.

6. What steps will you take to enhance positive or reduce negative impacts?

There are no additional steps considered necessary to enhance the indirect positive impacts of an expanded lower multiplier in relation to age. No negative impacts have been identified.

Disability

7. What evidence is available and what is its source? Include the findings from any engagement. 

As non-domestic rates multipliers affect the costs faced by owners and occupiers of non-domestic property, the impacts are generally upon businesses and other organisations rather than individuals.

Although there may be indirect impacts on employment within the retail, food and drink hospitality, visitor accommodation and leisure sectors, if reduced costs result in increased staffing, the 2021 Census indicates that there are limited differences in employment of disabled people within these sectors compared to economy wide averages.

The policy is also expected to provide indirect positive impacts for some disadvantaged areas and people, including those affected by digital exclusion, who are particularly reliant on access to local businesses. Although digital exclusion has improved (reduced) in recent years, with 4% of the population in Wales not using the internet, disabled people are more likely to be excluded.

8. Is any evidence unavailable or uncertain? 

It is not possible to assess any indirect impacts of reduced costs for relevant businesses on disability related considerations, as these will be highly context specific and also affected by numerous other factors.

9. Who have you engaged with, why and how?

Engagement with stakeholders in relation to differential multipliers was undertaken as part of the consultation undertaken by the previous Welsh Government, prior to their first introduction in 2026-27. This enabled those affected or with views on differential multipliers and their potential impacts to respond. No views relating to disability were raised during this process.

10. How has evidence affected your proposal? 

The proposal to amend the differential multipliers has not been affected by any evidence related to disability. Evidence related to digital exclusion was considered when the lower multiplier was originally introduced for retail and this remains relevant, particularly in relation to that sector.

11. What are the likely impacts of the proposal? 

There are no anticipated direct impacts relating to disability as a result of this proposal. Support which benefits eligible business, particularly physical retail shops, is expected to help limit the impact of digital exclusion on disabled people. 

12. What steps will you take to enhance positive or reduce negative impacts?

There are no additional steps considered necessary to enhance the indirect positive impacts of an expanded lower multiplier in relation to disability. No negative impacts have been identified.

Race

13. What evidence is available and what is its source? Include the findings from any engagement. 

As non-domestic rates multipliers affect the costs faced by owners and occupiers of non-domestic property, the impacts are generally upon businesses and other organisations rather than individuals.

Although there may be indirect impacts on employment within the retail, food and drink hospitality, visitor accommodation and leisure sectors, if reduced costs result in increased staffing, the 2021 Census indicates that there are limited differences in employment of people of different races within these sectors compared to economy wide averages.

14. Is any evidence unavailable or uncertain? 

It is not possible to assess any indirect impacts of reduced costs for relevant businesses on race related considerations, as these will be highly context specific and also affected by numerous other factors.

15. Who have you engaged with, why and how? 

Engagement with stakeholders in relation to differential multipliers was undertaken as part of the consultation undertaken by the previous Welsh Government, prior to their first introduction in 2026-27. This enabled those affected or with views on differential multipliers and their potential impacts to respond. No views relating to race were raised during this process.

16. How has evidence affected your proposal? 

The proposal to amend the differential multipliers has not been affected by any evidence related to race.

17. What are the likely impacts of the proposal? 

There are no anticipated impacts relating to race as a result of this proposal. 

18. What steps will you take to enhance positive or reduce negative impacts? 

No positive or negative impacts have been identified, and no additional steps are considered necessary.

Religion, Belief or Non-Belief

19. What evidence is available and what is its source? Include the findings from any engagement. 

As non-domestic rates multipliers affect the costs faced by owners and occupiers of non-domestic property, the impacts are generally upon businesses and other organisations rather than individuals.

Although there may be indirect impacts on employment within the retail, food and drink hospitality, visitor accommodation and leisure sectors, if reduced result in increased staffing, the 2021 Census indicates that there are limited differences in the employment of people with different religion, belief or non-belief within these sectors compared to economy wide averages.

20. Is any evidence unavailable or uncertain? 

It is not possible to assess any indirect impacts of reduced costs for relevant businesses on religion, belief or non-belief related considerations, as these will be highly context specific and also affected by numerous other factors.

21. Who have you engaged with, why and how? 

Engagement with stakeholders in relation to differential multipliers was undertaken as part of the consultation undertaken by the previous Welsh Government, prior to their first introduction in 2026-27. This enabled those affected or with views on differential multipliers and their potential impacts to respond. No views relating to religion, belief or non-belief were raised during this process. 

22. How has evidence affected your proposal?

The proposal to amend the differential multipliers has not been affected by any evidence related to religion, belief or non-belief.

23. What are the likely impacts of the proposal? 

There are no anticipated impacts relating to religion, belief or non-belief as a result of this proposal.

24. What steps will you take to enhance positive or reduce negative impacts? 

No positive or negative impacts have been identified, and no additional steps are considered necessary.

Sex

25. What evidence is available and what is its source? Include the findings from any engagement. 

As non-domestic rates multipliers affect the costs faced by owners and occupiers of non-domestic property, the impacts are generally upon businesses and other organisations rather than individuals.

There may be indirect impacts on employment within the retail, food and drink hospitality, visitor accommodation and leisure sectors, if reduced cost result in increased staffing. The 2021 Census provided data on employment by sex and sector. A higher-than-average proportion of those employed in the relevant sectors are female (53% vs 48%), whilst the opposite is true for males (47% vs 52%).

26. Is any evidence unavailable or uncertain?

It is not possible to assess any indirect impacts of reduced costs for relevant businesses on sex related considerations, as these will be highly context specific and also affected by numerous other factors.

27. Who have you engaged with, why and how? 

Engagement with stakeholders in relation to differential multipliers was undertaken as part of the consultation undertaken by the previous Welsh Government, prior to their first introduction in 2026-27. This enabled those affected or with views on differential multipliers and their potential impacts to respond. No views relating to sex were raised during this process.

28. How has evidence affected your proposal? 

The proposal to amend the differential multipliers has not been affected by any evidence related to sex.

29. What are the likely impacts of the proposal? 

There are no anticipated direct impacts relating to age as a result of this proposal. There may be indirect positive impacts for females if reduced costs for ratepayers promote employment, but any such impacts will be highly context dependent and not possible to isolate from other factors.

30. What steps will you take to enhance positive or reduce negative impacts?

There are no additional steps considered necessary to enhance the indirect positive impacts of an expanded lower multiplier in relation to sex. No negative impacts have been identified.

Gender Reassignment

31. What evidence is available and what is its source? Include the findings from any engagement. 

As non-domestic rates multipliers affect costs faced by owners and occupiers of non-domestic property, the impacts are generally upon businesses and other organisations rather than individuals. There does not appear to be any relevant evidence to assess impacts of changes to non-domestic rates multipliers upon individuals based on gender reassignment.

32. Is any evidence unavailable or uncertain? 

There may be indirect impacts relating to employment. However, the 2021 Census data on employment by sector and protected characteristic does not capture information relating to gender reassignment.

Even if data were available, it is not possible to assess any indirect impacts of reduced costs for relevant businesses on gender reassignment related considerations, as these will be highly context specific and also affected by numerous other factors.

33. Who have you engaged with, why and how? 

Engagement with stakeholders in relation to differential multipliers was undertaken as part of the consultation undertaken by the previous Welsh Government, prior to their first introduction in 2026-27. This enabled those affected or with views on differential multipliers and their potential impacts to respond. No views relating to gender reassignment were raised during this process.

34. How has evidence affected your proposal? 

The proposal to amend the differential multipliers has not been affected by any evidence related to gender reassignment.

35. What are the likely impacts of the proposal? 

There are no anticipated impacts relating to gender reassignment as a result of this proposal.

36. What steps will you take to enhance positive or reduce negative impacts? 

No positive or negative impacts have been identified, and no additional steps are considered necessary.

Sexual Orientation 

37. What evidence is available and what is its source? Include the findings from any engagement. 

As non-domestic rates multipliers affect costs faced by owners and occupiers of non-domestic property, the impacts are generally upon businesses and other organisations rather than individuals. There does not appear to be any relevant evidence to assess impacts of changes to non-domestic rates multipliers upon individuals based on their sexual orientation.

38. Is any evidence unavailable or uncertain? 

There may be indirect impacts relating to employment. However, the 2021 Census data on employment by sector and protected characteristic does not capture information relating to sexual orientation.

Even if data were available, it is not possible to assess any indirect impacts of reduced costs for relevant businesses on sexual orientation related considerations, as these will be highly context specific and also affected by numerous other factors.

39. Who have you engaged with, why and how? 

Engagement with stakeholders in relation to differential multipliers was undertaken as part of the consultation undertaken by the previous Welsh Government, prior to their first introduction in 2026-27. This enabled those affected or with views on differential multipliers and their potential impacts to respond. No views relating to sexual orientation were raised during this process.

40. How has evidence affected your proposal?

The proposal to amend the differential multipliers has not been affected by any evidence related to sexual orientation.

41. What are the likely impacts of the proposal? 

There are no anticipated impacts relating to disability as a result of this proposal.

42. What steps will you take to enhance positive or reduce negative impacts? 

No positive or negative impacts have been identified, and no additional steps are considered necessary.

Pregnancy and Maternity 

43. What evidence is available and what is its source? Include the findings from any engagement. 

As non-domestic rates multipliers affect costs faced by owners and occupiers of non-domestic property, the impacts are generally upon businesses and other organisations rather than individuals. There does not appear to be any relevant evidence to assess impacts of changes to non-domestic rates multipliers upon individuals based on pregnancy and maternity.

44. Is any evidence unavailable or uncertain? 

There may be indirect impacts relating to employment. However, the 2021 Census data on employment by sector and protected characteristic does not capture information relating to pregnancy and maternity.

Even if data were available, it is not possible to assess any indirect impacts of reduced costs for relevant businesses on pregnancy and maternity related considerations, as these will be highly context specific and also affected by numerous other factors.

45. Who have you engaged with, why and how? 

Engagement with stakeholders in relation to differential multipliers was undertaken as part of the consultation undertaken by the previous Welsh Government, prior to their first introduction in 2026-27. This enabled those affected or with views on differential multipliers and their potential impacts to respond. No views relating to pregnancy and maternity.

46. How has evidence affected your proposal? 

The proposal to amend the differential multipliers has not been affected by any evidence related to pregnancy and maternity.

47. What are the likely impacts of the proposal? 

There are no anticipated impacts relating to pregnancy and maternity as a result of this proposal. 

48. What steps will you take to enhance positive or reduce negative impacts?

No positive or negative impacts have been identified, and no additional steps are considered necessary.

Marriage and Civil Partnership 

49. What evidence is available and what is its source? Include the findings from any engagement. 

As non-domestic rates multipliers affect costs faced by owners and occupiers of non-domestic property, the impacts are generally upon businesses and other organisations rather than individuals.

There may be indirect impacts on employment within the retail, food and drink hospitality, visitor accommodation and leisure sectors, if reduced costs result in increased staffing. The 2021 Census provided data on employment based on marriage and civil partnership. A higher-than-average proportion of those employed in the relevant sectors are single or never married (56% vs 42%), whilst the opposite is applicable for people who are married and living with their spouse (34% vs 48%).

50. Is any evidence unavailable or uncertain

It is not possible to assess any indirect impacts of reduced costs for relevant businesses on marriage and civil partnership related considerations, as these will be highly context specific and also affected by numerous other factors.

51. Who have you engaged with, why and how?

Engagement with stakeholders in relation to differential multipliers was undertaken as part of the consultation undertaken by the previous Welsh Government, prior to their first introduction in 2026-27. This enabled those affected or with views on differential multipliers and their potential impacts to respond. No views relating to marriage and civil partnership were raised during this process.

52. How has evidence affected your proposal? 

The proposal to amend the differential multipliers has not been affected by any evidence related to marriage and civil partnership.

53. What are the likely impacts of the proposal? 

There are no anticipated direct impacts relating to marriage and civil partnership as a result of this proposal. There may be indirect positive impacts for single or never married people if reduced costs for ratepayers promote employment, but any such impacts will be highly context dependent and not possible to isolate from other factors.

54. What steps will you take to enhance positive or reduce negative impacts? 

There are no additional steps considered necessary to enhance the indirect positive impacts of an expanded lower multiplier in relation to marriage and civil partnership. No negative impacts have been identified.

C. Publication Monitoring

1. Is this EqIA an update on a version previously published?

No

2. How will you monitor and evaluate progress on the equality issues identified in this EqIA?

No particular equalities issues have been identified, aside from potential indirect positive impacts which will be highly context dependent and not possible to isolate from other factors. As such, no specific monitoring and evaluation plans are considered necessary.