Written question WQ85834

At a non-domestic rating (NDR) revaluation, all hereditaments are valued based on the conditions as at the antecedent valuation date (AVD). For the 2023 revaluation, the AVD is 1 April 2021. The Valuation Office Agency (VOA) is an independent executive agency of HM Revenue and Customs and has a statutory function to compile and maintain the lists of non-domestic properties in Wales (and England).

There is a considerable amount of work involved in the VOA revaluing the more than 120,000 hereditaments in Wales. That is why there is a necessary lead-in time for a revaluation taking effect. I recognise that circumstances will change for many ratepayers during that time, but continual adjustments to reflect changes that occur during preparation for a revaluation would be a barrier to timely implementation.

In my Oral Statement of 29 March 2022, I announced our intention to move towards a three-year revaluation cycle. This represents a fundamental improvement in the fairness of the NDR system and its responsiveness to economic change.

The Welsh Government is also exploring options for shorter revaluation cycles and the potential for reducing the gap between the AVD and a new rating list coming into effect. My officials are working with the VOA to explore these options. It will be important to ensure that more frequent revaluations, and the measures required to achieve them, are established and embedded first. This will enable a better-informed consideration of further improvements to the revaluation cycle in future.