What plans does the Minister have to review Wales' non-domestic business rates given that they remain the highest in the UK and the challenges faced by Welsh high streets?
On 29 March 2022, I set out my plans for a programme of non‑domestic rates reform that will be delivered over this Senedd term. Our Programme for Government sets out the Welsh Government's ambition for a fairer, greener and stronger Wales. These principles form the basis of any potential changes to the non-domestic rates system. I have subsequently consulted on a range of specific proposals for reform.
My oral statement on 2 May reflected on the progress we have made and reaffirmed our commitment to the proposals set out in the consultation. This includes more frequent revaluations, which many stakeholders have been calling for, to ensure that rates valuations more accurately reflect up-to-date market conditions.
The current non-domestic rating list was compiled on 1 April this year, following a revaluation of every property in the tax-base. This was accompanied by a package of support worth £460m over the next two years, consisting of a freeze to the multiplier and 75% relief for retail, leisure and hospitality businesses in 2023-24, as well as transitional relief continuing into 2024-25. Our 75% relief for retail, leisure and hospitality businesses this year constitutes the fourth year in which we have provided generous relief for these sectors, supporting high streets across Wales, and follows on from targeted relief for high streets in previous years.
The multiplier is one factor that determines a ratepayer’s bill and it should not be considered in isolation. Another factor is the rateable value of the property. Our tax-base, with an average rateable value of around £19,000, is very different from that in England, with a much higher average around £33,000. Reliefs are then applied to bills, which reduce or remove liability for the majority of ratepayers in Wales.