Hundreds of thousands could face higher council tax bills in Wales under Labour

Mark Drakeford and row of houses in Port Talbot

Hundreds of thousands could face higher council tax bills in Wales under Labour

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Hannah Woodward

By Hannah Woodward


Published: 14/11/2023

- 19:07

Ministers today published details of the three options they are looking at for changing council tax

Hundreds of thousands of homes in Wales could face higher council tax charges as part of the Welsh Government's plans for reforming the council tax system.

Ministers today published details of the three options they are looking at for changing council tax.


The change comes as the Welsh Government says the current system is twenty years out of date and unfair with people living in homes in the lowest council tax bands paying a relatively higher amount of council tax in relation to the value of their homes. This is compared to people who live in higher-value homes.

The three options being looked at by the Welsh Government are minimal reform, modest reform and expanded reform.

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Minimal reform would see properties being revalued and keeping the current nine bands and rates.

Modest and expanded reform proposals would see people living in more expensive houses paying more, with an estimate that 450,000 homes in Wales would have higher council bills.

The options include a system with new tax bands for homes worth more than £1.2million.

The Welsh Government says it has no preference out of the three reform proposals, but ministers want feedback on all the options before deciding what to do. The consultation closes on Tuesday 6th February 2024.

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Mark Drakeford

The Welsh Government says it has no preference out of the three reform proposals, but ministers want feedback on all the options before deciding what to do.

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Minister for Finance and Local Government, Rebecca Evans, said: “We are asking people to help us shape the future of council tax in Wales.

“Achieving a fairer council tax will be one of the single most beneficial actions this Government can take towards making Wales a more equal nation.

“The benefits will be felt in the pockets of many households.

“This is not about raising more money from taxes and changes are not going to happen overnight.

“We see this very much as being a gradual process and that is why we are also asking for views on the pace of change.”

Rebecca Evans

Minister for Finance and Local Government, Rebecca Evans, said: 'We are asking people to help us shape the future of council tax in Wales'

PA

Property prices have increased remarkably since the last revaluation in 2003.

In England and Scotland, bills are still based on property values from 1991. Average band D council tax for Wales for 2023-24 is £1,879, in England, the average Band D council tax set by local authorities in England for 2023-24 is £2,065.

Reformed council tax changes were intended to come into force April 2025, however, changes could be deferred until the next Senedd term, or introduced in stages.

Opposition in the Senedd is condemning the changes saying it’s unjustified during a cost-of-living crisis.

Welsh Conservative Shadow Local Government Minister, Sam Rowlands MS said: “Since 1999 council tax in Wales has gone up by nearly 200 per cent.

“The Labour Government, in the typical spirit of wanting to make taxation more ‘progressive’, is stealthily planning on hiking up council tax for hard-working people.

“The last time a revaluation took place in Wales one in three families were hit with higher bills we can’t allow this to happen in the current cost of living challenge.

“It’s vitally important that any council tax revaluation is fair and justified and doesn’t hit hard-working people across Wales.”

GB News readers can respond to the Welsh Government’s consultation which closes on February 6, 2024.

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