8. Will the Cabinet Secretary make a statement on the Welsh Government's efforts to tackle any weaknesses in the business rates system? OAQ52557

Thank you for the question. The Welsh Government is exploring a number of options for strengthening the non-domestic rates system in Wales. These include proposals for tackling avoidance, considering the frequency of revaluations, and reviewing the appeals system. We are also looking at the scope for more fundamental reforms in the longer term.

Some months ago, I had an opportunity to question you on the Government’s attempt to tackle the increasing pattern of the owners of second homes registering their properties as holiday lets in order to avoid paying council tax. As they are small businesses, they qualify for business rate relief in accordance with the Government’s business rate relief scheme. You said at that time that you would work with local authorities and the valuation office in order to gather data and to monitor this. Could we have an update on this to see what that data has demonstrated to date? Given that there is a substantial increase in the number of second homes in Gwynedd, for example, unless these processes are sufficiently robust, then we have to be proactive in order to ensure that the ratepayer doesn’t lose out.

I thank Siân Gwenllian for that question. I do recall the question that we had on the floor of the Assembly previously.

After that, as the Member will know, I undertook to amend our tax policy work plan for this year, and it now includes a specific commitment to monitor the implementation of that legislation, to ensure that it is operating as intended and that it does not create opportunities for avoidance. So, that work is part of the tax plan; it is being undertaken. I plan to report in October, alongside the draft budget, on the work that has been carried out this year under the tax plan, and I will be reporting on the data that we've collected as part of that exercise.

I thank the Cabinet Secretary.