I'm very grateful to Llyr Gruffydd for his comments today, and just through Llyr I'd like to thank Cefin Campbell for the excellent work, which we've done, I think, together, on this particular area of our co-operation agreement, and for his really constructive approach and the ideas and challenge that he's brought to the work so far. I know there's a lot more for us to be doing on this, because, as I say, this is just stage 1 of our consultations, which is why it's so important that we do look across a broad range of issues, which Llyr Gruffydd has described today, the first being the council tax reduction scheme and exploring what our plans are for improving that. I think that making the wider council tax scheme more progressive might reduce the demand for support through our council tax reduction scheme, but we still expect that there will be the continued need to support low-income households with their council tax bills, which is one of the reasons why we're exploring what changes we might need to make to the scheme in the future.

Our aim, of course, is to support those who need it, and we have to take into account the wider conditions, such as the roll-out of universal credit, which has had a big impact on council tax and the eligibility for support, and also, of course, changes to the wider economy. We want to take the opportunity to improve the design of the scheme to make it easier to administer and obviously simpler for people to access the support to which they're entitled in the first instance. Our council tax reduction scheme is currently supporting 270,000 households with their bills and over 210,000 pay no council tax at all because of the support that we're able to invest in it. Around 20 per cent of households, that means, receive some help with their bills, but we know that the landscape here is continuing to change, so we need to explore this as part of our consultation. There are some specific questions on this in the consultation, which will help us understand the best way forward. 

Then, also, there was a reference to discounts and exemptions. The current landscape there is extremely complex, and the discounts and exemptions have grown incrementally since the inception of council tax in 1993, so I think that the review that we're doing of these is more than timely, I think, in terms of understanding what changes we might wish to make. I think it's probably too early at the moment to say what those changes might be. We have to undertake the work. We have to listen to people through the consultation. But we have established an expert-led working group of officials and local authority practitioners to help consider this specific aspect and to consider the review of the existing arrangements. Around 37 per cent of dwellings are currently subject to one or more discounts, and 4 per cent of dwellings are exempt, so that's a total of almost 600,000 of our 1.5 million properties, so obviously there is lots of work for us to do to make sure that the exemptions are the right ones and the discounts are the right ones in the future. Some of these changes will require primary legislation; for example, were we to make any changes to the one-adult discount, that would require primary legislation, for example.

I think the points about debt and arrears were also really well made. We've introduced the council tax protocol for Wales, which is a way in which we can try and build that good practice in the collection of council tax amongst local government. It was made in collaboration with local government and has been jointly endorsed by the Welsh Government and the Welsh Local Government Association and signed up to by all of those 22 authorities. But we have begun, now, a review and evaluation of some of the key actions that we took in the last Senedd term to try and ensure that people are able to deal with debt and have the support that they need. So, that's an important part of the consultation, and, again, there are questions in relation to debt and arrears. 

Finally, I think the points about local authorities and the impact on them are really, really important, because, of course, the nature of the tax base differs across Wales, and our consultation does recognise that and considers it. So, we will be analysing the impacts of a revaluation on local authorities once we have that further information, which I referred to, about the IFS updating the figures, which they did before the pandemic, and that will help us have a much more granular look across Wales at what the implications might be. But it is the case, I think, that the reforms outlined would inevitably change the nature of the tax base in each area, and so the consultation then proposes that funding for authorities through the revenue support grant would be reallocated according to the latest tax base. I think that's the fairest way to do it. But, again, we need to consider what transitional arrangements might be needed for local government in this respect.

So, another important area of the consultation where we're keen to hear from local government and others, and I think I didn't respond to the point that Sam Rowlands made earlier about the importance of consulting widely, so local government will obviously have a strong view on that particular element of the consultation, but then Llyr Gruffydd referred to potentially older people, so older people's organisations will want to contribute as well, and there'll be people across the spectrum who will have an interest in this, obviously, because council tax affects us all.

But I want to make it clear that people don't have to answer all of the questions, so if a resident has a strong view and wants to share it with us they don't feel obliged to answer the questions about local government and so on—just engage with us at the level at which people want to, so that we can hear as many diverse voices as we can.