We move now to item 9, the Non-Domestic Rating (Multiplier) (Wales) Regulations 2022. I call on the Minister for Finance and Local Government to move the motion—Rebecca Evans.

Motion NDM7918 Lesley Griffiths

To propose that the Senedd, in accordance with Standing Order 27.5:

1. Approves The Non-Domestic Rating (Multiplier) (Wales) Regulations 2022 laid in the Table Office on 20 January 2022.

Motion moved.

I move the motion to approve the Non-Domestic Rating (Multiplier) (Wales) Regulations 2022. These regulations set the multiplier for non-domestic rating purposes for 2022-23. In 2017, the Welsh Government set out its intention to change the measure of inflation used to calculate the multiplier in Wales from the retail price index to the consumer price index from 1 April 2018. This has previously been effected through annual Orders approved by this Senedd. Following the passage of the Local Government and Elections (Wales) Act 2021, an increase in CPI is now the default statutory position. On 20 December, I announced the decision to move away from this position for 2022-23. Instead, the multiplier will be frozen. The regulations need to be approved before the vote on the local government finance reports on the final local government and police settlements for 2022-23, or before 1 March 2022, whichever is earlier. I am therefore seeking approval of these regulations ahead of the vote on the report on the police settlement later today.

The Non-Domestic Rating (Multiplier) (Wales) Regulations 2022 will set the multiplier so that it remains at the level set for both 2020-21 and 2021-22, which is 0.535. The regulations will result in there being no increase in the rate bills to be paid by businesses and other non-domestic property owners in 2022-23. The Local Government and Elections (Wales) Act 2021 made a permanent change to the basis for increasing the multiplier from 1 April 2022. Our intention is to use CPI in future years. 

I am grateful to the Legislation, Justice and Constitution Committee for its consideration of the regulations. Non-domestic rates policy is largely devolved. Freezing the multiplier prevents increases in rate bills that rate payers would otherwise face. This change will help businesses and other rate payers in Wales, particularly given the pressures they've been facing, while maintaining the stable stream of tax revenue for local services. The change is fully funded by the Welsh Government. We are investing £35 million to cover the cost of the freeze so that there will be no impact on the funding provided for local services. I therefore ask Members to approve the regulations today.

I'm speaking in my capacity this afternoon as the Welsh Conservatives spokesman on finance. As a group, we will be supporting these regulations. As we all know, businesses have experienced significant disruption and financial losses during the pandemic, and so the freezing of NDR multiplier in line with what has happened elsewhere in the UK will help to ease the pressure on businesses. However, I would like to make a brief point that business rates in Wales are still higher than elsewhere in the UK. For example, the multiplier in Wales is 53.5p, whilst in England, the standard multiplier is 51.2p, and for small businesses, it's 49.9p. Even the higher property rate in Scotland is 52.4p and is obviously lower than the standard rate in Wales. And so I do think that more could be done to reduce the multiplier to create a more competitive environment for Welsh businesses, as well as helping them to not just recover from the pandemic, but to thrive. 

Finally, I would call for the Welsh Government to consider introducing a split multiplier, so that smaller businesses can benefit from reduced NDR rates. To me, it's somewhat unfair that such businesses are expected to pay the same multiplier as large businesses, and so reducing the burden on smaller businesses would help to give them a timely boost. Thank you.

The Minister for finance to reply to that.

Diolch, Llywydd. I'm grateful to the Welsh Conservatives spokesperson for confirming the Welsh Conservatives support of the regulations today. Of course, the spokesperson doesn't, in his contribution, mention the Welsh Government's permanent small business rates relief scheme, which, of course, supports tens of thousands of businesses across Wales with their rates, with many paying no rates whatsoever. And of course, businesses here in Wales are still benefitting in the retail, hospitality and leisure sectors from paying no rates in this financial year, due to the decision that Welsh Government took to provide a full year's relief, as compared to lesser relief across the border in England. And, of course, colleagues will be familiar with the fact that businesses in those mentioned sectors will receive a 50 per cent rate relief in the next financial year, recognising the pressures that those businesses and those sectors have been under. But, again, I'm grateful for the Welsh Conservatives spokesperson's support for today's regulations.

The proposal, therefore, is to agree the motion. Does any Member object? No. The motion is therefore agreed in accordance with Standing Order 12.36.

Motion agreed in accordance with Standing Order 12.36.