National Assembly for Wales

The launch of our consultation on proposals to introduce differential multipliers for Wales marks the commencement of our engagement with stakeholders on these specific proposals, however there has been regular engagement with stakeholders around the potential use of the differential multiplier powers in the Local Government Finance (Wales) Act 2024 over the past year. My officials have met with retail sector representatives since the launch of the consultation.

Ratepayers for approximately 11,470 small to medium sized shops would not benefit from the proposed retail multiplier, because they already receive full relief from non-domestic rates liability. In addition, approximately 1,650 larger (by rateable value) shops would not be subject to the proposed retail multiplier. A breakdown by local authority is set out in Table 1 below.

Table 1: Number of shops which would not benefit from the proposed retail multiplier, by local authority

Source: Local authority billing data

Approximately 970 shops would be subject to the proposed higher multiplier. A breakdown by local authority is set out in Table 2 below.

Table 2: Number of shops which would be subject to the proposed higher multiplier, by local authority

Source: Local authority billing data

A wider range of statutory costs apply to all businesses which would be subject to a higher multiplier, not only larger operators in the retail sector. The only exclusions from a higher multiplier we have considered are those set out in the consultation, in respect of specific property types occupied by public sector bodies or other institutions which are largely sustained by public funding models.

The proposed threshold of £100,000 for a higher multiplier takes account of the composition of the tax-base in Wales, which has relatively low average rateable values (for example, compared to England). The part of the tax-base to which a higher multiplier would apply must be broad enough to ensure that a modest supplement could provide sufficient revenue to support the lower retail multiplier.

The levels of all multipliers will be determined as part of our budget setting for 2026-27, taking account of the outcome of the non-domestic rates revaluation which will also take effect on 1 April 2026. All relevant policy matters will be considered when all necessary information is available.