Item 7 is the Non-Domestic Rating (Alteration of Lists and Appeals) (Wales) Regulations 2023, and I call on the Minister for Finance and Local Government to move the motion, Rebecca Evans. 

Motion NDM8228 Lesley Griffiths

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

1. Approves that the draft The Non-Domestic Rating (Alteration of Lists and Appeals) (Wales) Regulations 2023 is made in accordance with the draft laid in the Table Office on 28 February 2023.

Motion moved.

Diolch. I move the motion to approve the Non-Domestic Rating (Alteration of Lists and Appeals) (Wales) Regulations 2023. The regulations provide for the Valuation Office Agency's digital platform and check, challenge, appeal process to be extended to Wales. They also enable the changes to make the arrangements for appeals to the valuation tribunal for Wales more effective and efficient.

A consultation that closed in 2018 explained the case for reform and sought views on proposed changes to the appeals system in Wales. The consultation provided an opportunity to consider how we can make our appeals system more robust, fit for the future and reflective of the tax base in Wales. One of the key messages from the consultation responses was that no changes should be made between revaluations. Our changes will therefore commence on 1 April when the new rating list takes effect. The VOA has been running the check, challenge, appeal process in England since 2017. In extending the approach to Wales, we have tailored the system to reflect the unique nature of our tax base and feedback from stakeholders. In particular, stakeholders have welcomed our decision not to introduce fees for appeals. If the other reforms are successful in minimising the number of unnecessary appeals, any additional benefit from a fee regime may not justify the administrative costs.

On 29 March 2022, I made an oral statement setting out the Welsh Government’s plans to reform non-domestic rates during the current Senedd term. We have recently consulted on a range of proposals, including plans to move towards more frequent revaluations. The changes that we are making to the appeals system are a critical enabler for this objective. A draft of the regulations was the subject of a technical consultation last year. On 4 November, I published a summary of responses and confirmed that we would move forward with the reforms to the appeals system. A small number of improvements have been made to the regulations in response to the comments received during the consultation.

I am grateful to the Legislation, Justice and Constitution Committee for its consideration of the regulations, and no issues have been raised. I ask Members to approve the regulations today.

Can I thank the Minister for opening this discussion? Plaid Cymru won’t be objecting to these regulations, but I did have a couple of questions that I’d like the Minister to address, if possible, given that I have an opportunity to raise them.

The new valuation and appeals system is heavily predicated on the new VOA digital platform. So, can I ask what consideration has been made of those whose access to the digital platform might be limited? I’m thinking particularly, but not necessarily only, of those who don’t have some key IT skills—but there are still connectivity issues relevant to some places—and those people, of course, whose disabilities might mean that it’s quite challenging for them to have access to that. In the same vein as well, what assurance can you give on the ability to process cases through the medium of Welsh? I think that we need assurances that that will be something that can be provided for those who require it.

Finally, the president of the Welsh Tribunals has recently recommended including the Valuation Tribunal for Wales within a reformed first-tier tribunal system. Now, if such a reform were to be implemented, what changes, if any, would need to be made to these proposals? Diolch.

I call on the Minister for Finance and Local Government to reply to the debate.

Thank you very much to Llyr Gruffydd for those questions this afternoon. We have considered and consulted on the appeals reform over several years. In relation to access to digital connectivity, that wasn't raised as a particular barrier to our new proposals in terms of access to the VOA's digital platform. Bearing in mind that this is the system for non-domestic rates, most businesses will have either some level of digital connectivity or some degree of digital ability.

That said, we do have a much wider digital access and inclusivity agenda within the Welsh Government, which I think will be important in terms of addressing any of those gaps that remain in terms of digital skills. And of course, we continue to work on our broadband and connectivity issues more widely. So, I think that the use of the digital platform will be important in terms in ensuring that it continues to drive forward those wider digital access and connectivity agendas. So, I do take the points very much that have been made there.

In terms of the potential change for the role of the VTW and where that sits, I think that I will take some advice on that and write to Llyr Gruffydd following today's debate. But I think that, overall, these reforms will be warmly welcomed, bearing in mind that the aim, really, is about making the system more efficient and more effective, without putting those unnecessary burdens on ratepayers. The aim, of course, is that this will free up resources that will be directed to processing genuine appeals more quickly and improving service delivery. It's also important that the appeals process complements the arrangements being developed as part of our wider non-domestic rates reform, which is really about supporting more frequent revaluations. So, what we're discussing today, I think, is important in terms of giving us an important step forward in that particular direction as well.

We are very focused on having meaningful discussions with the VOA and the VTW, and I agree it's important that the Welsh language is an option for people in terms of their relationships with the VOA and the VTW, and, of course, we have important service-level agreements with the VOA that include a range of standards and indicators, particularly in relation to the timely handling of appeals. But, obviously, the Welsh language is important in there as well.

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

Motion agreed in accordance with Standing Order 12.36.