Written question WQ96560
- Asked by
- Peter FoxConservative
- To be answered by
- Cabinet Secretary for Finance and Welsh Language
- Tabled
- Due
- Answered
- Time to answer
- 6 days
Question
What engagement has the Cabinet Secretary had with the Welsh Retail Forum and retailers since the publication of the Welsh Government's consultation on proposals for non-domestic rates differential multipliers?
Answer
Answered by Cabinet Secretary for Finance and Welsh Language
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
Local authority
Shops with full relief
Properties not eligible
Isle of Anglesey
356
26
Gwynedd
755
54
Conwy
573
70
Denbighshire
482
58
Flintshire
420
77
Wrexham
354
69
Powys
681
30
Ceredigion
387
30
Pembrokeshire
590
54
Carmarthenshire
718
117
Swansea
715
171
Neath Port Talbot
529
34
Bridgend
488
70
Vale of Glamorgan
406
40
Rhondda Cynon Taf
1,048
66
Merthyr Tydfil
259
42
Caerphilly
652
50
Blaenau Gwent
489
18
Torfaen
349
56
Monmouthshire
204
38
Newport
488
91
Cardiff
522
388
Total
11,465
1,649
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
Local authority
Properties
Isle of Anglesey
17
Gwynedd
36
Conwy
42
Denbighshire
34
Flintshire
52
Wrexham
42
Powys
20
Ceredigion
17
Pembrokeshire
29
Carmarthenshire
62
Swansea
90
Neath Port Talbot
18
Bridgend
32
Vale of Glamorgan
21
Rhondda Cynon Taf
49
Merthyr Tydfil
34
Caerphilly
26
Blaenau Gwent
9
Torfaen
25
Monmouthshire
14
Newport
56
Cardiff
242
Total
967
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.