Rebecca Evans MS, Minister for Finance and Local Government
I am today announcing that the Welsh Government will be providing an additional package of non-domestic rates support worth more than £460m over the next two financial years.
The Welsh Government recognises the pressure that the current economic context, including high inflation, is placing on businesses and other ratepayers in Wales. Those pressures are also being felt by the public services we all rely on, and which are themselves reliant on the revenue raised through local taxes. We have taken the decision to freeze the non-domestic rates multiplier for 2023-24, at a cost of more than £200m over the next two years. A debate on the Regulations to freeze the multiplier will be scheduled in the New Year.
The next non-domestic rating list will come into force on 1 April 2023, following revaluation. The Welsh Government will provide all ratepayers whose liability is increasing by more than £300, as a consequence of revaluation, with transitional relief. Any increase in non-domestic rates liability as a result of revaluation will be phased in over two years. A ratepayer will pay 33% of their additional liability in the first year (2023-24) and 66% in the second year (2024-25), before reaching their full liability in the third year (2025-26). The Welsh Government is providing £113m over two years to fund this relief, supporting all areas of the tax-base through a consistent and straightforward transitional scheme.
I have laid the draft Non-Domestic Rating (Chargeable Amounts) (Wales) Regulations 2022 before the Senedd. Subject to the approval of the Senedd, the Regulations will come into force on 31 December 2022 and provide for transitional relief from 1 April 2023.
In addition, the Welsh Government will also be providing over £140m of non-domestic rates relief for retail, leisure and hospitality businesses in Wales. Eligible ratepayers will receive 75% non-domestic rates relief for the duration of 2023-24. Like the similar scheme announced by the UK Government, the Welsh Government’s Retail, Leisure and Hospitality Rates Relief scheme will be capped at £110,000 per business across Wales. Our approach means that businesses in Wales will receive comparable support to that provided in other parts of the UK.
This generous £460m package of support is in addition to our fully funded permanent relief schemes that provide over £240m of relief to businesses and other ratepayers every year. We remain committed to supporting businesses to recover from the impacts of the pandemic and current economic challenges, to thrive moving forward.