Ministers considering whether to go ahead with council tax changes

2 hours ago

Gareth LewisWales political editor

It is unclear if the Plaid Cymru Welsh government will continue with a planned revaluation of homes as part of council tax reform in 2028, or ditch the idea.

Siân Gwenllian, the local government minister, said the government was "actively looking" at whether it was going to go ahead.

She said the decision was the responsibility of Finance Minister Elin Jones and that discussions would take place on "next steps".

The Welsh government was asked if it was committed to a revaluation, but a spokesperson did not answer the question directly, saying it was committed to making council tax "fairer".

Plaid made the same pledge in its Senedd election manifesto, which stated that the current system was "long overdue for reform".

Council tax reform was also part of the cooperation agreement between the previous Welsh Labour government and Plaid Cymru, when Plaid was in opposition.

Speaking to BBC Wales on Thursday, Gwenllian said: "Council tax reform is in the portfolio of the finance minister and obviously I'll be having discussions with her around exactly what will be our next steps on that one."

Asked to clarify party policy, and whether it was committed to revaluation in 2028, she said: "That's something that we're actively looking at at the moment and those conversations haven't really happened in depth yet, so you'll find out soon enough about all of that."

She went on to say the current system was not fair and that it was recognised as a "regressive regime".

Council tax reform has the potential to cause problems for politicians.

A local government source described it as a "classic zero-sum game" in which "everyone who gains stays quiet and those who lose out go ballistic".

Established in the early 1990s, council tax has long been criticised for being unfair because it is based on property prices, not on people's ability to pay.

Welsh homes have not been revalued for 23 years - during which time they have increased significantly in value - but plans to do so were postponed in 2024 by the previous Labour government after a consultation.

The decision led to criticism at the time from Plaid Cymru, economists and consumer groups.

However, the Senedd did pass legislation committing to a 2028 revaluation, so any change to the law would need another vote in the Welsh Parliament.

Under the proposals, new property bands could have been created.

The most radical idea would have seen those in lower bands paying less and those in higher ones paying more.

Asked whether the Welsh government was committed to a 2028 revaluation, a spokesperson said: "The new government is moving quickly to establish priorities and put the right foundations in place.

"Making council tax fairer is a commitment we take seriously and we will set out our approach shortly.

"We want to work collaboratively with local authorities, listen to communities across Wales and build a system that is genuinely fairer - and that takes proper preparation.

"Getting reform right matters more than getting it done quickly.

"We will be open about our progress and transparent with the people of Wales as this work develops."

Gwenllian also confirmed that ministers would review the tax rules for self-catering accommodation.

Properties must be available for 252 days and, after a change in 2025, be let out for an average of 182 days over several years to pay non-domestic rates instead of the higher council tax.

The minister said the 182-day threshold would be reviewed along with other measures brought in to try to tackle the "problems of second homes".

She said: "So absolutely we will now be looking forensically at the measures that were brought in.

"We'll see what is actually working, what is not working and do we need to go further with some of the policies.

"So that's all up to discussion and all up to review now."

Gwenllian also said that a new arms-length body called Unnos would look at "innovative" ways of financing the building of social homes in order to help meet the government's 20,000 target by 2030.

She said: "There's, for example, the Wales Pension Fund. Local authorities now in Wales pool their pension funds together.

"That could be used for investing in social homes in Wales."