Council Tax

2. Questions to the Minister for Finance and Trefnydd – in the Senedd on 26 June 2019.

Alert me about debates like this

Photo of Caroline Jones Caroline Jones UKIP

(Translated)

7. Will the Minister outline the steps the Welsh Government is taking to reduce council tax bills in South Wales West? OAQ54115

Photo of Rebecca Evans Rebecca Evans Labour 3:13, 26 June 2019

Our council tax reduction scheme supports around 280,000 households with their council tax bills. We've been working with local authorities to develop clear and consistent advice on this scheme, and the other discounts and exemptions available, to ensure all households receive the support that they're entitled to.

Photo of Caroline Jones Caroline Jones UKIP

Minister, my region has seen an average increase in band D council tax of 60 per cent since 2007. Over that time, inflation has only averaged around 2.5 per cent. Over the same period, people have seen their refuse collections halved, day centres closed, libraries closed and leisure centre services axed. Why are my constituents paying so much more for so much less? Minister, will you commit your Government to cutting council taxes next year, or will my constituents, once again, see rises greater than their increase in wages?

Photo of Rebecca Evans Rebecca Evans Labour 3:14, 26 June 2019

Well, the level of council tax is set by local authorities in Wales, but we have continued to protect local government in Wales from significant cuts against a backdrop of reducing budgets from the UK Government. That said, I'm completely aware of the severe pressures that local authorities are under, but they are receiving over £4.2 billion from the Welsh Government in core revenue funding to spend on delivering those key services to which you refer, and we included additional funding in the final budget, so the settlement saw an increase of 0.2 per cent on a like-for-like basis as compared to last year. So, clearly, these are challenging times.

But, in terms of the average band D council tax rate, it's £159 lower than the average band D council tax rate in England. And we've also allowed local authorities to maintain maximum flexibility in managing their budgets throughout the period of austerity, so we haven't imposed national limits on budget increases, but we do recognise that that's a matter for local determination. Also, we don't require local authorities to conduct costly referenda or to ring-fence funding raised through council tax for specific purposes. So, we do try to give local authorities the maximum flexibility that we can, whilst also trying to make council tax fairer. So, we've got rid of the sanction of imprisonment for the non-payment of council tax. We've legislated to ensure that all care leavers in Wales are exempt from council tax until their twenty-fifth birthday, and we're also continuing with our council tax reduction scheme, which means, as part of the 280,000 households that have help, 220,000 of those pay nothing at all. We're constantly working to find more ways to make council tax fairer, working in partnership with local authorities to do so.