Council tax in Wales is set to be made fairer under new plans put forward by the Welsh Government, which could include revaluation and new bands.
The reforms, which are part of the Co-operation Agreement with Plaid Cymru, would ensure a more progressive approach to supporting the local services which council tax helps pay for, including schools, social care provision, policing, fire and rescue services, and road infrastructure.
An initial consultation on the reforms has opened today and is open for 12 weeks.
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Proposals include a revaluation exercise to ensure people are paying the right level of tax.
The vision launched today is for a future system which rebalances the tax burden on households, funds services that benefit everyone, and has regular updates to keep the tax fair.
Proposals include completing a revaluation of all 1.5 million properties in Wales to ensure valuations are up-to-date and people are paying the appropriate amount. This would enable different bands to be created with new tax rates chosen for each band, creating a fairer tax.
The purpose of the revaluation would be to rebalance the tax payable between households. The last revaluation in Wales was in 2003. While the value of homes has increased significantly since then, the system would remain a relative one, so increasing property values would not necessarily lead to increasing council tax.
Rebecca Evans, Minister for Finance and Local Government, said:
“Council tax pays for essential local services we all rely on, but the way it is currently charged has a disproportionate impact on less affluent people.
“These reforms will bring the council tax system up to date while making it fairer, meaning council tax is less of a worry for people with tighter household budgets. The reforms are not intended to raise more revenue from council taxpayers overall as, while some people could pay more, many others would pay less, and we will consider the need for transitional arrangements for any changes.
“We recognise this is a significant exercise and that we have a great deal of work to do before any changes can be introduced. These proposals are at an early stage so I encourage people to have their say through the consultation.”
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