As part of a cooperation agreement between the country’s Government and Plaid Cymru, the proposed changes are being recommended to pay for local services. The changes include carrying out a revaluation of all 1.5 million properties in Wales to make sure valuations are up-to-date and taxpayers are paying the correct amount. This would allow different bands to be created with new tax rates chosen for each band which the devolved Government in Wales hopes will create a “fair” system.
As it stands, council tax in Wales pays for around a fifth of spending by local councils.
However, the existing current system is antiquated and contributes to existing “wealth inequalities”, according to the Welsh Government
For example, households in the highest possible tax band can be worth more than nine times the value of homes in the bottom band.
This is despite the fact the highest tax band home will pay only three and a half times more council tax.
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An initial consultation into the proposal to change the council tax legislation in Wales is open for the next 12 weeks.
The last revaluation of the tax brackets in the country was back in 2003 and the value of homes has risen dramatically since then.
According to the Welsh Government, the council tax system will remain a relative one despite any future changes.
This means that property values going up would not necessarily mean an increase in someone’s council tax bill.
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On the changes, Rebecca Evans, the minister for Finance and Local Government, explained: “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.
“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.”
Councillor Andrew Morgan, leader of the Welsh Local Government Association, added: “Council tax is an important source of funding for all our local services from schools and care services, through to waste collection and transport.
“While it accounts for around 20 percent of everything councils spend, it is nevertheless significant, and it is vital that this local tax is kept up to date and fair.
“A tax that is based on property values that are nearly 20 years out of date cannot be fair and that must be addressed. The system must be made fair across the range of household incomes.
“Any proposal will have to be carefully considered given the quirks of the local housing market, and we will work with ministers to ensure that we can deliver this important reform.”
On the changes, Rebecca Evans, the minister for Finance and Local Government, explained: “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. T
“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.”
