The next non-domestic rates revaluation in Wales will take effect in 2023 and will be based on property values as at 1 April 2021.
Postponing the revaluation to 2023 will mean that the rateable values on which rates bills are based will better reflect the impact of COVID-19. The change will also mean that the next revaluation in Wales takes effect at the same time as that in England, ensuring businesses and other ratepayers in Wales are not placed at a disadvantage compared to those elsewhere.
The Welsh Government continues to explore more fundamental reforms to the local taxation system. I have previously outlined our approach to reforming local taxes – council tax and non‑domestic rates – as an integral part of the wider local government finance system. I published an update on progress last November.
In reforming the local taxation system, our aim is to provide greater resilience for local authorities; fairness for citizens and businesses, and ensure there is sustainable funding for vital local services.
We have already achieved our short-term goals for the non‑domestic rates system in Wales and we are now considering wider and longer-term questions. These include looking at different approaches to property valuation and whether they are viable; whether they would be fairer; and whether there would be benefits for public services and the economy in Wales. We are also looking at potential alternatives for raising revenue from non-domestic property in the longer term.
Any fundamental changes to non-domestic rates in Wales would need to be considered and developed over the longer term. Our intention is to bring together and publish the results from our programme of work in the autumn, to inform the debate about local government finance ahead of the next Senedd term.
The Welsh Government will continue to work closely with the Valuation Office Agency to ensure the revaluation process for 2023 is carried out in a timely and accurate manner, reflecting our ambitions for people and businesses in Wales.
This statement is being issued during recess in order to keep members informed. Should members wish me to make a further statement or to answer questions on this when the Senedd returns I would be happy to do so.