We move, therefore, to item 11, the Non-Domestic Rating (Multiplier) (Wales) Regulations, and I call on the Minister for Finance and Local Government to move the motion—Rebecca Evans.

Motion NDM8209 Lesley Griffiths

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

1. Approves The Non-Domestic Rating (Multiplier) (Wales) Regulations 2023 laid in the Table Office on 26 January 2023.

Motion moved.

Diolch. I move the motion to approve the Non-Domestic Rating (Multiplier) (Wales) Regulations 2023. The regulations set the non-domestic rating multiplier for 2023-24. On 12 December, I announced the decision to freeze the multiplier for 2023-24. It will remain at the same level set since 2020-21, which is 0.535. This means that all the rates bills paid in 2023-24 will be substantially lower than they would otherwise be. This change will help businesses and other ratepayers in Wales, particularly given the pressures that they've been facing, whilst maintaining a stable stream of tax revenue for local services. The freeze is fully funded by the Welsh Government. We're investing over £100 million annually to cover the cost, so there'll be no impact on the funding provided for services via NDR. I'm grateful to the Legislation, Justice and Constitution Committee for its consideration of the regulations, and I ask Members to approve the regulations today.

Thank you, Minister. We all know that SMEs are the beating heart of our Welsh economy. They provide vital employment and contribute to a sense of community and belonging. And while I'm pleased that that the multiplier has not risen, we cannot support the freeze, because it is clear that much more could have been done to support the business community. For example, as the explanatory memorandum highlighted in option 3, where it suggests an option to reduce the multiplier by 2 per cent, well, that would have brought us more in line with the rest of the UK. The fact is that businesses in both Scotland and England pay a lower rate of business rates than businesses do in Wales. Their multipliers are more generous, as are their small business relief schemes. It's clear that the cost of doing business is higher here in Wales than the rest of Great Britain, stunting business growth and increasing the pressures on business at a time when we should be looking to support them. So, much more could be done; whilst we welcome the freeze, it's not far—. We haven't done enough. Thank you.

Shall I respond to the debate, Llywydd?

Oh, sorry. Yes. I forgot that I had to say something. The Minister to respond, if she wishes to.

Yes, please. I am disappointed that the Conservatives are not supporting the freeze to the multiplier, because, of course, the alternative is that the multiplier rises in line with the consumer prices index, which would obviously be very bad news for businesses right across Wales, and we have to remember as well that the multiplier is only one factor that determines the ratepayer's bill, and it shouldn't be considered in isolation. Another factor, of course, is the rateable value of the property itself, and our tax base, with an average rateable value of around £19,000, is very, very different to that across the border in England, where they have a much higher average at around £33,000, and obviously then that drives a large difference in the average liability of ratepayers.

And it's also worth recognising, of course, that our support in terms of freezing the multiplier is only part of our support for businesses. We're providing through the final budget, which has been published today, over £460 million of support to ratepayers in Wales over the next two financial years, and that's on top of the £240 million of support that we provide every year. So, we're providing very extensive support to ratepayers across Wales in terms of, particularly, small businesses, but also those businesses in the retail, hospitality and leisure sectors, who will have their bills next year reduced by 75 per cent as a result of the support that we're providing.

And obviously, colleagues will be aware of the revaluation that has been taking place, and the fact that some properties will see their rates increase, so we've put in place transitionary support for all of those businesses who will see an increase of more than £300 as a result of that revaluation—again, a really fair and pragmatic approach to supporting businesses. And I think our package of new support, together with our permanent relief schemes, does ensure that we have really welcoming environment here for businesses in Wales, whilst of course protecting our local governmental funding.

And the regulations that we've put forward today will deliver a key element of that support, preventing the inflationary increases in rates bills that ratepayers would otherwise face, and, for that reason, Llywydd, I would ask the Conservatives to think again about their intention to vote against that course of action this afternoon.

The proposal is to agree the motion. Does any Member object? [Objection.] There is objection. We will therefore defer voting until voting time.

Voting deferred until voting time.