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

Part of the debate – in the Senedd at 3:59 pm on 7 December 2021.

Alert me about debates like this

Photo of Llyr Gruffydd Llyr Gruffydd Plaid Cymru 3:59, 7 December 2021

Diolch, Dirprwy Lywydd. Look, we have it in our power in this Chamber to radically reform what is one of the most regressive taxes that we have, actually. It's a legacy of the Thatcher era. It's grossly unfair, because it levies almost four times as much as a proportion of wealth on the poorest as it does the richest. Now, that's not something that we should tolerate, and that is something that needs to change. I'm glad that, as a result of the co-operation agreement between the Government and Plaid Cymru, we are now facing up to that, challenging that, and hopefully changing that as well. The current regime is outdated, it's unfair and it's inconsistent as well. We all know of villages maybe hundreds of yards apart where the disparity is hundreds of pounds in the bills that they pay every year. So, as the Minister said, this is the beginning of a journey, and the three-year co-operation agreement will take us part of that journey, but let's make a good start at least.

I'm glad that the Welsh Local Government Association has today welcomed this announcement. I think that's positive because, obviously, as key stakeholders go, they're probably one of the most key ones in this context. But it is going to be a broad process where all stakeholders are invited to be part of that discussion. Now, we as a party in our manifesto committed to reforming council tax and to, longer term, of course, actively considering a single property tax based on the principle of a land value tax. So, with that in mind, I'll just ask a couple of questions.