4. Statement by the Minister for Finance and Local Government: Reforming Council Tax in Wales

Part of the debate – in the Senedd at 3:52 pm on 7 December 2021.

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Photo of Sam Rowlands Sam Rowlands Conservative 3:52, 7 December 2021

Thank you, Deputy Presiding Officer, and thanks, Minister, for bringing forward today's statement on reforming council tax here in Wales. I'm sure Members across the Chamber welcome an announcement that consultation will be taking place next year on this, and as you describe it as an ambitious package of council tax reforms, I would, Minister, be interested to hear more of how radical you think these reforms may end up being. I note in your statement there is a desire to consider reforms to the non-domestic rates system as part of local taxation, so I'd be grateful if you could expand on this, perhaps, in your response.

I just have three points I'd just like to raise, and perhaps question on. I'd firstly like to welcome your engagement with local councils, and with leaders in particular, as you mentioned, and you've highlighted in your statement the exceptional work undertaken by councils, which, again, was highlighted and still continues to be highlighted during the COVID-19 pandemic. But we do need to understand why some of this reform is having to take place, and, according to Audit Wales, the Welsh Government's core funding for local government since 2010 has seen a 17 per cent reduction, and local councils simply haven't been funded sufficiently by Welsh Government. So, this deprioritisation of council funding has consequently seen many councils having to make tough decisions in relation to council tax increases, which has ultimately led to council tax here in Wales increasing by nearly 200 per cent since the start of devolution under this Labour Government. So, Minister, with this consultation, how will you balance the ability for councils to be in charge of their own financial destiny whilst not overburdening those local taxpayers?

The second point, Minister, is that I note in your statement and relevant press releases that an option for reform of council tax in Wales could be the revaluation of the council tax bands for the first time since 2003. I'm sure, Minister, you will be fully aware that, at the last revaluation, a whopping one out of three households received an increase in their bills as a result of the revaluation. In your statement, you do state that council tax is out of date and can be unfair. I don't think this can be necessarily argued with, nevertheless, revaluation could see hard-working families hit with those higher bills, so, Minister what plans do you have to ensure that we won't see so many people negatively affected by having those increases—those significant increases—in their council tax bill?

And then, finally, Minister, many people across Wales live on the border with England, working closely with friends, colleagues, neighbours, of course. I think it's around two thirds of the population of Wales living so close to the English border, and council tax reform could see many people in Wales put at a disadvantage to those just living across the border. So, I'm just wondering what talks you're having with your counterparts in the UK Government regarding this, and, indeed, council leaders across England. If those talks aren't already happening, when will you plan to hold those? Diolch yn fawr iawn.