Business Rates

Part of 1. Questions to the Minister for Finance and Local Government – in the Senedd at 2:05 pm on 13 October 2021.

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Photo of Rebecca Evans Rebecca Evans Labour 2:05, 13 October 2021

Well, it's very exciting to see how interested the Conservative benches are in the UK Government's approach to non-domestic rates. I decide non-domestic rates here in Wales, and we do so based on the situation here in Wales, which is somewhat different in terms of our economy, and we're very pleased to be in a position to do so here in Wales.

What I will say is that we're looking at an ambitious programme of reform for local taxation, considering various options for the future. I hope to say more, ideally this side of Christmas, specifically in terms of local taxation for council tax, but we're looking to see what more we can do to improve non-domestic rates. Again, there's a big opportunity for the UK Government on 27 October, through the spending review, to set out its plans for non-domestic rates in England for the next financial year, and of course it has a big impact on what we're able to do here.

You'll be aware of our scheme that we have in Wales, where retail, leisure and hospitality businesses have a full year of rate relief, which is much more generous than that which is available across the border, but to do that costs £380 million, so these are not small interventions that we're making, and they do—. If the UK Government manages to put in place a scheme that is able to support businesses in that significant way, obviously we would be looking to do something similar here in Wales. And UK Government is also undertaking the fundamental review of business rates in England and we're looking very closely at that to understand what it means for us here in Wales. For example, will they take action on taxing digital sales and so on? There are lots of questions that remain unanswered, but we look forward to that review reporting.