Mark Drakeford MS, Cabinet Secretary for Finance and Welsh Language
Today, a summary of responses is published of the consultation on proposals to introduce differential multipliers for non-domestic rates in Wales. I also confirm that I have laid the regulations required to enable the proposals to be implemented.
Two matters are particularly drawn to the attention of Members. Firstly, we propose to introduce a lower retail multiplier for small to medium sized shops, to re-balance the non-domestic rates system in their favour. This policy recognises the unique challenges faced by ‘bricks and mortar’ retail shops, not least through their exposure to competition from online retailers.
Secondly, we continue to consider the introduction of a higher multiplier for high value properties, to offset the revenue which would be forgone through the lower retail multiplier. A higher multiplier for the largest (by value) properties in the tax-base which is set at a level marginally above the standard multiplier would be sufficient to support a substantially lower retail multiplier.
The consultation received 172 responses. I am grateful to those who took the time to respond and recognise the range of views provided. A majority of respondents supported the proposals, with a particularly high level of support for a lower retail multiplier. I also recognise that some stakeholders would support a lower multiplier which applied to other sectors of the economy or were concerned about the potential application and level of any higher multiplier.
The levels of all multipliers for 2026-27 will be determined later this year, when all relevant information is available to inform those decisions. This will take account of the outcome of the next non-domestic rates revaluation, which will also take effect on 1 April 2026.
The necessary steps will now be taken to enable the proposals to take effect from 1 April 2026. The draft Non-Domestic Rating (Description of Differential Multipliers) (Wales) Regulations 2025 have been laid before the Senedd to specify the properties that will be subject to the lower retail and higher multipliers.
As set out when I launched the consultation, these proposals for the innovative first use of new powers to prescribe differential multipliers are intentionally relatively modest in their scope. The practical considerations which are highlighted during implementation will help inform the approach to further reform of the non-domestic rates system in the future.
The summary of responses to the consultation is available at: https://www.gov.wales/proposals-non-domestic-rates-differential-multipliers