Explanatory note

In relation to Wales, the non-domestic rating multiplier is calculated in accordance with paragraph 3B of Schedule 7 to the Local Government Finance Act 1988 (“the 1988 Act”) for each financial year when new rating lists are not being compiled. New rating lists are not being compiled for the financial year beginning on 1 April 2022 (“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 items B and C.

These Regulations apply to the financial year beginning on 1 April 2022, and disapply paragraph 5(5A)(a) of Schedule 7 to the 1988 Act. The Regulations also specify that the figure for item B is 109.1, which is the consumer prices index for September of the financial year which precedes that preceding the year concerned. This has the effect of the non-domestic rating multiplier remaining as the same figure as that calculated for the financial years beginning on 1 April 2020 and 1 April 2021.

In accordance with paragraph 5(13C) of Schedule 7 to the 1988 Act, these Regulations will only come into force if they are approved by a resolution of Senedd Cymru before Senedd Cymru approves the local government finance report for the financial year beginning on 1 April 2022, or before 1 March 2022 (whichever is earlier).

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.