Non-domestic rating retail multiplier

If you are using this scheme to provide awards of subsidy, you must inform the Subsidy Control Unit – email: scu@gov.wales.

Wales

Non-domestic rating retail multiplier

Paragraph A16(1)(a) and (4)(a) and (c) of Schedule 7 to the Local Government Finance Act 1988 (the 1988 Act) enables the Welsh Ministers to make regulations prescribing differential multipliers based on the rateable value and description of hereditaments on a local non-domestic rating list.

The application of the retail multiplier is specified by the Non-Domestic Rating (Description of Differential Multipliers) (Wales) Regulations 2025.

Separate regulations made under paragraph A16(3) of Schedule 7 to the 1988 Act will prescribe the value of the retail multiplier for each chargeable financial year.

The specific policy objective of the retail multiplier is to recognise the unique challenges faced by small to medium sized ‘bricks and mortar’ retail shops, not least through their exposure to competition from online retailers, by permanently re-balancing the non-domestic rates system to support the ongoing viability of the sector.

The total space required by retail shops within the non-domestic rates tax-base is large, but each property serves a localised market. In contrast, online retailers have a relatively modest, efficient and low-cost physical footprint, in the context of the national or international scale and reach of their business (primarily reflected in the use of large distribution warehouses). As non-domestic rates is a tax on property, this imbalance will not be addressed naturally over time through regular revaluations of the tax-base.

Permanently re-balancing the non-domestic rates system in favour of retail shops will reduce this imbalance in a manner which is proportionate to the liabilities of individual ratepayers. The specific policy objective will be directly achieved by the retail multiplier, through permanently lower non-domestic rates liabilities for beneficiaries.

Local authorities in Wales

The retail multiplier is applicable to hereditaments (units of non-domestic property with rating assessments) with rateable values below £51,000 and which are identified as shops, kiosks, pharmacies or post offices by their description in a local rating list. This includes 95% of all retail shops, but intentionally excludes large shops, department stores, hypermarkets and superstores. The intended beneficiaries are small to medium sized retail properties which are wholly or mainly used for the sale of goods to visiting members of the public.

Wholesale and retail trade; repair of motor vehicles and motorcycles.

1 April 2026 to 31 March 2029.

The retail multiplier is part of the non-domestic rates system from 1 April 2026 and has no default end date. This scheme has been registered for the duration of the 2026 non-domestic rating list and will then be extended or superseded, as appropriate.

£0 budget.

There is no budget for the retail multiplier, as the setting of all multipliers within the non-domestic rates system is intended to be revenue neutral for public authorities. The estimated total value to beneficiaries of the retail multiplier is up to £25 million per year by the end of this scheme duration. As such, the total estimated value of the impact over the duration of the scheme is up to £75 million.

Reduced non-domestic rates liabilities for hereditaments subject to the retail multiplier.

The retail multiplier is applicable to hereditaments with rateable values below £51,000 and any of the following descriptions in a local non-domestic rating list:

• kiosk and premises
• pharmacy and premises
• post office and premises
• shop and premises, or
• shop, post office and premises

The value of the benefit provided by the retail multiplier is calculated based on the difference in liability associated with the individual hereditament, compared with the situation if the standard multiplier applied. The value is equivalent to a reduction in liability of around 30%, reflecting the level at which the retail multiplier is set relative to the standard multiplier. This takes account of any relief which also applies. Eligible hereditaments which already attract full relief do not receive any additional benefit from the retail multiplier.

The estimated maximum benefit provided by the retail multiplier is less than £9,000 per year for each eligible hereditament by the end of this scheme duration, where the rateable value is almost £51,000 and no other relief applies.