The Welsh Government has announced that it will follow the position in England and postpone the revaluation of business rates in 2021 saying:
“Following the UK Government’s decision not to bring forward the Non-domestic rates revaluation, the same position will also be taken in Wales.
It is disappointing the UK Government has decided not to bring forward the revaluation to 2021, but understandable in the circumstances we are all facing. The Welsh Government was committed to delivering the 2021 revaluation for Wales. The UK Government’s decision to drop the revaluation Bill at this very late stage means it is not feasible for Wales to proceed with its planned timetable.
It is essential that we understand the impact that the coronavirus outbreak has on the economy and property values in Wales and that any future revaluation is based on robust and up-to-date information which accurately reflects business and market conditions when we come out of the current crisis. Determining the date for the next revaluation will be a significant decision which will have implications for all ratepayers and local government funding in Wales for years to come. We will need to make detailed assessments of the available evidence as we move into the recovery phase when the virus abates, and consider the options open to us.
We are continuing with our work to explore alternative approaches to the local taxes in Wales over the longer term and we will consider the options for a rates revaluation for Wales in the shorter term alongside this work, giving full consideration to the circumstances as a result of the coronavirus pandemic.”
Legislation had been introduced in the House of Lords to bring the next revaluation forward in England and Wales by one year from 2022 to 2021, but communities secretary Robert Jenrick said last month that this would no longer take place next year.
Alex Probyn, President of Expert Services at the real estate adviser Altus Group, said “once the UK Government announced it would not proceed with the primary legislation which covered both England and Wales this was inevitable” but agreed with the Welsh Government saying “it is far more beneficial economically to tie new Rateable Values, under the next revaluation cycle in 2022, to the post Covid-19 emerging economic circumstances.”