Business rates revaluation in Wales taking effect in 2023 in sync with England as government ‘explore more fundamental reforms’ to system

There is to be a delay in the revaluation of business rates in Wales, with a planned refresh next year postponed until 2023, with the synchronisation with England meaning “ratepayers in Wales are not placed at a disadvantage compared to those elsewhere” say Welsh Government.

Contrary to the everlasting belief of some on social media Wrexham Council do not set business rates, but do collect them. Welsh Government sets the business rates multiplier, and have offered several relief packages for some business rate payers over the years as it determines national business rates policy. Business rates (sometimes known as non-domestic rates or NDR) have been fully devolved to Wales since April 1st 2015.

The Valuation Office Agency (VOA), a UK Government body, assesses the rateable value of all non-domestic properties in Wales and England.

Back in May we asked the Rebecca Evans MS, Minister for Finance and Trefnydd about the new rating list date, when it was announced UK Government were postponing the revaluation to 2023. At the time the Minister said, “We welcomed the bringing forward of the planned revaluation to 2021 because we think that’s important because it does give businesses the most accurate reflection of a rateable value of their property. So it ensures that businesses are paying the correct amount for the property in which they are operating from” adding the UK Government delay was “…disappointing but completely understandable given the legislative challenges that UK Government is facing at the moment. Clearly, we will just have to work to a refreshed timetable in due course.”

Welsh Government have now confirmed the new ‘refreshed timetable’ with 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.

The Minister for Finance said yesterday, “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 have indicated there could be future changes to the entire system with the Minister adding, “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.”

The Minister said the government intend to publish the results from their programme of work in the autumn, “to inform the debate about local government finance ahead of the next Senedd term”.