The Non-Domestic Rating (Multiplier) (Wales) Regulations 2024

EXPLANATORY NOTE

(This note is not part of the Regulations)

In relation to Wales, the non-domestic rating multiplier is calculated in accordance with the formula in paragraph 3B of Schedule 7 to the Local Government Finance Act 1988 (“the 1988 Act”) for each financial year when rating lists are not being compiled. New rating lists are not being compiled for the financial year beginning with 1 April 2024 (“the year concerned”).

The formula in paragraph 3B of Schedule 7 to the 1988 Act includes items B and C. Item B is the consumer prices index for September of the financial year preceding the year concerned, and item C is the consumer prices index for September of the financial year which precedes that preceding the year concerned. Paragraph 5(13A) of Schedule 7 to the 1988 Act enables the Welsh Ministers to make regulations to amend, repeal or disapply certain sub-paragraphs in Schedule 7 to the 1988 Act, so as to substitute references to the consumer prices index to another index, or to specify or describe a figure for item B and/or C.

These Regulations apply to the financial year beginning with 1 April 2024, and disapply paragraph 5(5A) of Schedule 7 to the 1988 Act. These Regulations also specify that the figure for item B is 130.0. This has the effect of increasing the non-domestic rating multiplier by 5% from that calculated for the previous financial year. Without these Regulations, the default increase would be 6.7% in line with the change in consumer prices index.

The Welsh Ministers’ Code of Practice on the carrying out of Regulatory Impact Assessments was considered in relation to these Regulations. As a result, a regulatory impact assessment has been prepared as to the likely costs and benefits of complying with these Regulations. A copy can be obtained from the Local Government Finance Reform Division, Welsh Government, Cathays Park, Cardiff, CF10 3NQ.