Explanatory Memorandum tothe Non-Domestic Rating (Small Business Relief) (Wales) Order 2015

This Explanatory Memorandum has been prepared by Local Government Finance and Performance Division and is laid before the National Assembly for Wales in conjunction with the above subordinate legislation and in accordance with Standing Order 27.1.

Minister’s Declaration

In my view, this Explanatory Memorandum gives a fair and reasonable view of the expected impact of the Non-Domestic Rating (Small Business Relief) (Wales) Order 2015.

Edwina Hart

Minister for Economy, Science and Transport

11 February 2015 

1.         Description 

The Non-Domestic Rating (Small Business Relief) (Wales) Order 2008 (“the 2008 Order”) sets out the legislative framework for the operation of a Small Business Rate Relief Scheme in Wales.  In 2010, the 2008 Order was amended to make provision for an increase in the level of small business rate relief to certain categories of ratepayer (“the temporary rate relief scheme”).  

The temporary rate relief scheme was originally intended to apply between 1 October 2010 and 30 September 2011 but has continued to apply to date.  This has been achieved by amending the 2008 Order annually – the latest Order was made in March 2014 and will cease to have effect on 31 March 2015.  However, a consequence of the amendment Orders is that the legislation has now become difficult to navigate.

The Non-Domestic Rating (Small Business Relief) (Wales) Order 2015 (“the 2015 Order”) revokes and re-enacts with amendments the 2008 Order  to make provision for the continuance of a small business rate relief scheme and a temporary rate relief scheme. The 2015 Order does not change the existing levels of relief available.  The temporary rate relief scheme will run from 1 April 2015 to 31 March 2016. In addition, the 2015 Order restructures and simplifies the provisions to make them clearer to understand and apply.

2.         Matters of special interest to the Constitutional and Legislative Affairs Committee   

None.

3.         Legislative background

The powers enabling Welsh Ministers to make a Small Business Rates Relief Scheme are contained in sections 43(4B)(b), 44(9)(b),143(1) and 146(6) of the Local Government Finance Act 1988.