Rebecca Evans MS, Minister for Finance and Trefnydd
The Welsh Government is today announcing a freeze of the non-domestic rates multiplier for 2021-22. The multiplier is an integral part of determining ratepayers’ bills. This decision will ensure, prior to applying any reliefs, that there is no increase in the amount of rates businesses pay next year.
The multiplier was for many years increased in line with the Retail Prices Index measure of inflation. Since 2018-19, the Welsh Government has increased the multiplier in line with the lower measure of Consumer Prices Index. Capping non-domestic rates multiplier increases to CPI, rather than RPI, between 2018-19 and 2020-21, alongside freezing the multiplier in 2021-22 will result in ratepayers in Wales saving over £90 million on their rates bills since 2018-19.
This support is in addition to the £580 million package of rates relief provided to businesses this year.
The Welsh Government continues to examine further measures of support it can put in place for businesses following the end of the EU exit transition period and the economic impact of the coronavirus pandemic.
As a consequence of this announcement, the motion to approve The Non-Domestic Rating (Multiplier) (Wales) Order 2020, previously scheduled for debate on Tuesday 8 December has been withdrawn. A debate on the new Order freezing the multiplier will be scheduled in the New Year.