Welsh Government has launched a consultation on the business rates system in Wales with a number of proposals under consideration.
Rebecca Evans MS, Minister for Finance and Local Government, said the consultation covers a wide range of improvements to the NDR (non-domestic rates) system.
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The proposals include:
■ More frequent revaluation cycles so valuations more accurately reflect up-to-date market conditions.
■ Improving the flow of information between government and ratepayers, taking advantage of digital services.
■ Providing the Welsh Government with more flexible legislation to amend reliefs and exemptions in future years.
■ A review of reliefs and exemptions to ensure the arrangements align with our Programme for Government commitments and the available support is targeted in the most effective way.
■ Providing greater scope to vary the multiplier to help align annual increases with our economic development priorities.
■ Improving the administration of valuation functions and rating lists to streamline processes and reduce the burden on government and ratepayers.
■ Further measures to continue tackling avoidance.
In response to the launch of the consultation, Sara Jones, Head of the Welsh Retail Consortium, said: “The evidence is clear: sky high business rates cost shops and jobs, so it is encouraging to see recognition by the Welsh Government of the need for business rates reform. Without change, four-in-five retailers say they are likely or certain to close stores.
“As one of Wales’ largest private sector employers, spread across every village, town and city, retail serves as a vital lifeline to places most in need, offering flexible jobs, supporting other businesses on the high street, and breathing life into local communities. This is the perfect opportunity to begin the process to reverse the damage done by business rates and ensure a tax system that supports the retail industry’s investment and growth long into the future.”
She added: “Action is needed now, and we call on the finance minister to heed the recommendations we have recently made to her as part of the forthcoming Welsh budget, asking for a commitment to rule out any increase in the business rate next Spring and set out a timetable for returning the multiplier rate permanently to a lower and more sustainable level. Any increases in next year’s multiplier will have a devastating effect on Welsh shops, at a time when they are grappling with spiralling costs, flatlining sales and faltering shopper footfall.”
David Chapman, Executive Director of UKHospitality Cymru, said: “This is the culmination of at least ten years of our pushing for reform. We must ensure it heralds an end to the current out-of-touch, archaic, property-based system which imposes an unfair burden on our already beleaguered businesses.
“Over recent years hospitality businesses have gradually taken on more and more financial responsibility for the payment of rates as many businesses have moved out-of-town or onto the internet. It is imperative that the rates system takes account of the additional costs of delivering hospitality in person – rather than remotely – and we strongly advocate a variable multiplier to reflect this position.
“Hospitality businesses are the heart of our communities and are often multi-generational owned sites that are local town landmarks. They have been punished for this commercial and community loyalty by absorbing proportionately higher rates year-on-year as others have left or moved online.
“This consultation is the gateway to delivering equality into the system and it must deliver positive change. UKHC will be contributing at all stages in the process to make sure hospitality’s voice is heard and that we secure a just and equitable solution.”
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