Item 8 on the agenda this afternoon is the legislative consent motion on the Non-Domestic Rating (Lists) (No. 2) Bill, and I call on the Minister for Finance and Trefnydd to move the motion. Rebecca Evans.

Motion NDM7604 Rebecca Evans

To propose that the Senedd, in accordance with Standing Order 29.6 agrees that provisions in the Non-Domestic Rating (Lists) (No. 2) Bill in so far as they fall within the legislative competence of the Senedd, should be considered by the UK Parliament.

Motion moved.

Thank you. I welcome this opportunity to explain the background to this legislative consent motion. I am grateful to both the Legislation, Justice and Constitution Committee and the Economy, Infrastructure and Skills Committee for considering and reporting on the memorandum. Both committees consider that there is no impediment to the Senedd agreeing to the legislative consent motion. I note the helpful points raised by the Legislation, Justice and Constitution Committee and confirm that I have come to the same decision about the next revaluation date as the UK Government.

However, I would like to highlight the detailed programme of work that we have in train to consider the longer term reforms for non-domestic rates in Wales. The UK Government introduced the Non-Domestic Rating (Lists) (No. 2) Bill on 8 September to provide for technical changes to the non-domestic rates system in England and Wales. Provisions in the Bill applying to Wales will move the next revaluation date from 1 April 2022 to 1 April 2023. The Bill also adjusts the deadline for the submission of proposed lists from 30 September in the preceding valuation year to 31 December. The primary reason for the change of date is to take into account the impact of the pandemic on the valuation process and property markets. The Bill also ensures that there is consistency in the valuation approach adopted across Wales and England during these uncertain times.

I believe these provisions fall within the legislative competence of the Senedd, however, I am content that these provisions should be made in a UK Bill. There is no other suitable primary legislation that would enable us to effect the necessary changes within the timescales needed to allow the revaluation to proceed. This is a short, technical Bill to effect a change that has the widespread support of businesses and other ratepayers across Wales. Therefore, I move the motion and ask the Senedd to approve this legislative consent motion.

Thank you. I call on the Chair of the Legislation, Justice and Constitution Committee, Mick Antoniw.

Thank you, Dirprwy Lywydd. We considered the legislative consent memorandum on the Non-Domestic Rating (Lists) (No.2) Bill in October last year, and our report was laid back in early November. Our report sets out some of the background to the Bill and highlights the previous Bills that did not progress in the UK Parliament for various reasons.

In our report, we've noted the Welsh Government’s assessment as to which clauses of the Bill require the Senedd’s consent and also noted the UK Government’s view that clause 1(1) and clause 2 also require consent, although we recognise that these provisions are ancillary in nature.

We also noted the Welsh Government’s reasons as to why, in its view, making provision for Wales in the Bill is appropriate. In doing so, we've acknowledged that modifying the functions of valuation officers of the Valuation Office Agency through an Act of the Senedd would require the consent of the Secretary of State. However, we are concerned that the Welsh Government has cited as part of its justification for consenting to the UK Bill reasons of 'coherence' and

'The interconnected nature of the Welsh and English systems for administering revaluations for rating purposes'.

I have listened carefully to the explanation and the reasons given by the Minister today. The committee did differ from that approach, because we do not consider that such justification would be appropriate.

As we have indicated previously during our consideration of statutory instrument consent memoranda and Standing Order 30C written statements, such justification, in our view, lacks credibility in the context of devolution. We, therefore, said that we would welcome clarification from the Welsh Government as to whether similar changes in the future would be made through a Welsh Bill, and we've had the Minister's comments today. Diolch, Dirprwy Lywydd.

Thank you. I have no other speakers. I don't know whether the Minister for Finance and Trefnydd wants to reply to the debate. Rebecca Evans.

I will do, briefly; thank you, Deputy Presiding Officer. I just welcome the opportunity to hear from the Chair of the committee. The non-domestic rates system provides really vital revenue for funding local government services here in Wales. Revaluations do play an important role in ensuring that bills accurately reflect the market conditions and that non-domestic ratepayers contribute their fair share towards the costs of local government services. Of course, revaluation isn't a revenue-raising measure; it just maintains the fairness of the system by redistributing the liability for NDR to reflect the changes in the property market and business sectors.

In terms of the question as to why the UK Bill, including Welsh provisions in the UK Bill is necessary on this occasion to ensure that the VOA receives a timely statutory instruction to undertake its valuation work. There was no other suitable legislative vehicle in the current Senedd programme that could have given effect to the change of date of the revaluation in the very tight timescales that are required. But this action doesn't undermine devolution, and I do want to reiterate that I did make a decision about the next revalution date very carefully, considering all of the options. My decision then was that this Bill was the most effective way in which to implement our Welsh policy changes.

Thank you very much for the contributions from the committees to the scrutiny of this.   

Thank you. The proposal is to agree the motion. Does any Member object? I don't see any objections; therefore, again, in accordance with Standing Order 12.36 the motion is agreed. 

Motion agreed in accordance with Standing Order 12.36.

In accordance with Standing Order 12.18, I will now suspend the meeting before proceeding to Stage 3 of the Curriculum and Assessment (Wales) Bill. So, the meeting will stand suspended.

Plenary was suspended at 16:24.

The Senedd reconvened at 16:30, with the Llywydd in the Chair.