Local Government Finance (Wales) Act 2024

Prospective

Non-domestic rating multipliers E+W

10 Calculation of non-domestic rating multipliers E+W

In Schedule 7 to the 1988 Act, after Part A1 insert—

“PART A2 E+W NON-DOMESTIC RATING MULTIPLIERS: WALES

Introduction

A13 This Part of this Schedule has effect to determine, in relation to Wales, the non-domestic rating multiplier for each chargeable financial year.

Calculation of non-domestic rating multiplier: revaluation years

A14 (1) The non-domestic rating multiplier for a revaluation year is to be calculated in accordance with the formula—

(2) In sub-paragraph (1)—

(a) “A” is the non-domestic rating multiplier for the financial year preceding the year concerned;

(b) “B” is the consumer prices index for September of the financial year preceding the year concerned;

(c) “C” is—

(i) the consumer prices index for September of the financial year which precedes that preceding the year concerned, or

(ii) where the base month for the consumer prices index for September of the financial year which precedes that preceding the year concerned (the first year) differs from that for the index for September of the year which precedes the year concerned (the second year), the figure which the Welsh Ministers calculate would have been the consumer prices index for September of the first year if the base month for that index had been the same as the base month for the index for September of the second year;

(d) “D” is the number of whole pounds in the Welsh Ministers’ estimate of the total of the appropriate rateable values of all appropriate hereditaments, where—

(i) appropriate rateable values are those which will be shown in lists for the last day of the financial year preceding the year concerned once all alterations to those lists have been made, and

(ii) appropriate hereditaments are those which will be shown in lists for that day once all alterations to those lists have been made;

(e) “E” is the number of whole pounds in the Welsh Ministers’ estimate of the total of the appropriate rateable values of all appropriate hereditaments, where—

(i) appropriate rateable values are those which will be shown in lists for the first day of the financial year concerned once all alterations to those lists have been made (including rateable values which will be shown in lists for a later day as a result of any alterations of the lists because of the inaccuracy of the lists for that first day), and

(ii) appropriate hereditaments are those which will be shown in lists for that first day once all alterations to those lists have been made.

(3) The Welsh Ministers must make estimates under sub-paragraph (2)(d) and (e) on the basis of information available to them on such date as they determine.

(4) But this paragraph does not apply for the purposes of—

(a) Schedules 4ZA and 4ZB, in respect of a hereditament of a description specified in regulations under paragraph A16(1)(a);

(b) Schedule 5A, in respect of an amount of a rateable value shown against the name of a designated person in the central non-domestic rating list specified in regulations under paragraph A16(1)(b).

Calculation of non-domestic rating multiplier: other years

A15 (1) The non-domestic rating multiplier for a chargeable financial year other than a revaluation year is—

(a) the default amount, or

(b) if the Welsh Ministers make an adjustment to that amount under sub-paragraph (4), that amount as adjusted.

(2) The default amount is to be calculated in accordance with the formula—

(3) In sub-paragraph (2), “A”, “B” and “C” have the meanings given in paragraph A14.

(4) The Welsh Ministers may make an adjustment to the default amount to reflect the extent to which their last estimate of the total mentioned in paragraph A14(2)(d) or (e) appears to them to differ from the actual total.

(5) But this paragraph does not apply for the purposes of—

(a) Schedules 4ZA and 4ZB, in respect of a hereditament of a description specified in regulations under paragraph A16(1)(a);

(b) Schedule 5A, in respect of an amount of a rateable value shown against the name of a designated person in the central non-domestic rating list specified in regulations under paragraph A16(1)(b).

Calculation of differential multipliers

A16 (1) The Welsh Ministers may by regulations provide that the non-domestic rating multiplier for a chargeable financial year in respect of—

(a) a description, specified in regulations, of hereditaments on local non-domestic rating lists, or

(b) an amount (or amounts), of a rateable value shown against the name of a designated person in the central non-domestic rating list,

is to be calculated in accordance with the formula—

M × N.

(2) In sub-paragraph (1)—

(a) “M” is the non-domestic rating multiplier for the chargeable financial year under paragraph A14 or A15 (as the case may be);

(b) “N” is a number prescribed by the Welsh Ministers in regulations.

(3) Regulations under this paragraph may prescribe different values for N in relation to—

(a) different specified descriptions of hereditaments on local non-domestic rating lists;

(b) different specified amounts of rateable values shown against the names of designated persons in the central non-domestic rating list.

(4) But regulations under this paragraph may only specify descriptions of hereditaments on local non-domestic rating lists by reference to one or more of—

(a) the rateable value shown in the list for—

(i) the chargeable day concerned, or

(ii) the first day of the financial year,

as regards a hereditament;

(b) the location shown in the list as regards a hereditament;

(c) any description shown in the list for—

(i) the chargeable day concerned, or

(ii) the first day of the financial year,

as regards a hereditament.

(5) Regulations under sub-paragraph (1)(b) may specify an amount of a rateable value by reference to a range of amounts.

Calculation of differential multipliers: supplementary

A17 (1) Where paragraph 3 of Schedule 4ZA (improvement relief) applies in respect of a hereditament, regulations under paragraph A16 apply in respect of that hereditament as though the amount of the rateable value shown for the day in respect of the hereditament under section 42(4) is the amount of that rateable value minus G.

(2) Where paragraph 3 of Schedule 5A (improvement relief) applies, regulations under paragraph A16 apply in respect of the amount of the rateable value shown for the day against the name of the ratepayer under section 53(3) as though the amount shown for that day is the amount of that rateable value minus G.

(3) In sub-paragraphs (1) and (2), “G” is the amount prescribed, or calculated in accordance with provision prescribed, by the Welsh Ministers under paragraph 10(7) of Schedule 4ZA or paragraph 6(6) of Schedule 5A (as the case may be).

(4) If—

(a) regulations are made under paragraph A16(3)(a), and

(b) more than one of the descriptions specified in the regulations applies in respect of a hereditament,

that hereditament is to be treated as though only the description in respect of which the value of N is lowest applies.

Welsh Ministers’ power to alter the calculations for non-domestic rating multipliers

A18 The Welsh Ministers may by regulations amend, repeal or disapply paragraph A14 or A15 so as to—

(a) substitute for references to the consumer prices index references to another index, or

(b) provide that—

(i) B is a figure specified or described in (or calculated in a manner specified in) the regulations;

(ii) C is a figure so specified or described (or so calculated).

Making and giving notice of calculations etc.

A19 (1) The Welsh Ministers must, in advance of each chargeable financial year—

(a) calculate for that year—

(i) the non-domestic rating multiplier under paragraph A14 or A15 (as the case may be), and

(ii) if regulations under paragraph A16 are in force, the non-domestic rating multiplier under that paragraph, and

(b) as soon as is reasonably practicable after doing so, serve on each billing authority a notice stating the non-domestic rating multipliers as calculated under paragraph (a).

(2) In calculating a multiplier, a part of a whole (if any) is to be calculated to three decimal places only.

(3) The notice must show how any calculation has been made and contain details of any estimates or adjustments that have been made.

(4) Where the financial year is one for which the Welsh Ministers have calculated a figure for C under paragraph A14(2)(c)(ii), the notice must contain the figure they have calculated.

(5) Where the financial year is a revaluation year, the notice must specify the date determined under paragraph A14(3) for the purpose of making estimates under paragraph A14(2)(d) and (e).

(6) A calculation made by the Welsh Ministers under this paragraph is invalid if made at a time when regulations under paragraph A18 which are effective in relation to the year have not come into force.

Interpretation

A20 (1) In this Part—

(a) “the consumer prices index” means the general index of consumer prices (for all items) published by the Statistics Board or, if that index is not published for a relevant month, any substituted index or index figures published by the Board;

(b) “the base month” for the consumer prices index for September of a particular year is the month for which the consumer prices index is taken to be 100 and by reference to which the index for the September in question is calculated.

(2) In this Part “revaluation year means a chargeable financial year at the beginning of which new lists must be compiled (see sections 41ZA(3) and 52ZA(3)).”

Commencement Information

I1 S. 10 in force at 1.4.2025, see s. 23(3)(a)

11 Calculation of non-domestic rating multipliers: supplementary provision E+W

(1) The 1988 Act is amended as follows.

(2) In Schedule 4ZA—

(a) in paragraph 1, for paragraphs (a) and (b) substitute “in accordance with the formula—

(b) in paragraph 2(1), for paragraphs (a) and (b) substitute “in accordance with the formula—

”;

(c) in paragraph 4(1), for paragraphs (a) and (b) substitute “in accordance with the formula—

”;

(d) in paragraph 10, after sub-paragraph (9) insert—

“(9A) In relation to Wales, “M is the non-domestic rating multiplier calculated under Schedule 7 as regards the hereditament for the financial year.”

(3) In Schedule 4ZB—

(a) in paragraph 1(1), for paragraphs (a) and (b) substitute “in accordance with the formula—

”;

(b) in paragraph 1(2)—

(i) in paragraph (a) for “Secretary of State may by regulations provide that sub-paragraph (1)(a)” substitute “appropriate national authority may by regulations provide that sub-paragraph (1)”;

(ii) omit paragraph (b).

(c) in paragraph 3(6), for paragraphs (a) and (b) substitute—

“(a) in relation to England—

(i) whichever of B or D is prescribed for the purposes of the provision in question by the Treasury in regulations, or

(ii) for the purposes of a provision where there is no such prescription, B;

(b) in relation to Wales, the non-domestic rating multiplier calculated under Schedule 7 as regards the hereditament for the financial year.”

(4) In Schedule 5A—

(a) in paragraph 1, for paragraphs (a) and (b) substitute “in accordance with the formula—

”;

(b) in paragraph 2(4), for paragraphs (a) and (b) substitute “in accordance with the formula—

”;

(c) in paragraph 6(8), for paragraphs (a) and (b) substitute—

“(a) in relation to England—

(i) whichever of B or D is prescribed for the purposes of the provision in question by the Treasury in regulations, or

(ii) for the purposes of a provision where there is no such prescription, B;

(b) in relation to Wales, the non-domestic rating multiplier calculated under Schedule 7 as regards the hereditament for the financial year.”

Commencement Information

I2 S. 11 in force at 1.4.2025, see s. 23(3)(a)