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
