MS, Cabinet Secretary for
Finance, Constitution and Cabinet Office: In 2022, I made
a statement setting out
a programme of non-domestic rates reform for the current Senedd
term and consulted on a range of
specific proposals for improvements. Most of these proposals are
reflected in the Local Government Finance (Wales) Bill, which is
currently being considered by the Senedd.
As part of this reform agenda, I committed to undertaking a
review of non-domestic rates reliefs. I am pleased to confirm
that, following the outcome of a competitive procurement process
earlier this year, a research contract has been awarded to Alma
Economics to conduct this review.
The Welsh Government spends over £250m annually on permanent
non-domestic rates reliefs. In addition, we have provided more
than £1bn in temporary reliefs since 2020, to support eligible
business in the sectors most affected by economic challenges
during that period.
This review is being undertaken to provide an insight into the
effectiveness of the considerable financial support offered to
non-domestic ratepayers and to inform how the existing package of
reliefs may be changed in the future. There are three core
strands to the research:
- Principles – develop a set of key principles to guide future
changes to non-domestic rates reliefs.
- Practicalities – test and refine the developed principles,
considering the practicality of the reliefs and their
administration by local authorities.
- Perceptions – consider the perspectives of current ratepayers
and their representatives, to further test and refine the
principles.
The review of reliefs will be completed over the next 12 months,
culminating in the publication of a Government Social Research
report. Stakeholders will be invited to engage with the review as
it progresses, and I encourage participation where the
opportunity arises.
