3. Statement by the Minister for Finance and Local Government: A Fairer Council Tax

Part of the debate – in the Senedd at 2:57 pm on 12 July 2022.

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Photo of Sam Rowlands Sam Rowlands Conservative 2:57, 12 July 2022

Thank you, Deputy Presiding Officer, and can I thank you, Minister, for bringing forward today's statement on a fairer council tax, one that I've been looking forward to and I'm sure many of us have been looking forward to as well? Can I also welcome your balance of comments in terms of recognising some of the positive elements of council tax as it currently stands? I think you said that there are a great deal of positives about the council tax system that we should not lose sight of, that it has stood the test of time since the 1990s and represents local democracy in action, which I'm sure we'd both want to continue seeing take place. I also acknowledge where you've pointed out some improvements in the system that could and should take place as well.

In responding to your statement today, Minister, I'd like to also welcome the fact that you're going out to consultation on the future of council tax here in Wales. As we know, council tax impacts every household up and down Wales, and it's vitally important that we encourage as many people as possible to engage with any process of change, including one around council tax. It's even more important when we know many people are facing uncertainty with the future cost of living that we're all looking at at the moment. But, one concern I have with consultations, Minister, which I'm sure you may share from time to time, is that we often don't receive a big enough response, with many parts of our community missed out. So, in light of this, I wonder what assurances you can give that this consultation will ensure people from all walks of life are included and listened to. 

Secondly, Minister, as we know from your statement today, the council tax proposal will see a complete revaluation of all 1.5 million properties in Wales, with the aim of ensuring valuations are up to date and people are paying the appropriate amount of council tax. Certainly, we'd want to see as up-to-date information as possible. I agree with that. Of course, this revaluation will be the first since 2003 in Wales, which was controversial at the time, because one in three households received a higher bill than they were used to paying. It's vitally important that any change leads to a fair transition for council tax payers and will not force anyone to fall off a financial cliff edge. So, in addition to this, it's crucial that those on fixed incomes, such as pensioners, who may not have significant income in proportion to their house value, are properly considered as well. So, Minister, how will you ensure that any revaluation won't see the same mistakes of 2003, and that hard-working families and those on fixed incomes won't be hit with those higher bills? 

And finally, Minister, I note from today's statement that you're now using the term 'a fairer council tax', which I'm sure we'll all be positive about, but you were previously talking about council tax reform, perhaps a stronger statement previously. And I wonder if this is because Welsh Government now believe that your proposals are not sufficient enough reform to be calling it true reform. Minister, I can certainly accept that the current system for council tax does need some review. However, I'm not sure that your current proposals are real reform. So, in light of your consultation, I'm wondering whether you foresee any alternatives to a revaluation, and a few extra bands being proposed as well. For example, in the consultation, we could see suggestions such as a proportional property tax, which I know some Members in this Chamber would support, or a local income tax, for example, or even perhaps a council tax linked to the energy efficiency of your home to help incentivise people to make their houses more energy efficient.

So, in light of this, what assessment have you made of genuine alternatives that may be raised from the consultation, and if so, would you commit to explore these further so that consultation can be as open as possible? And I'm sure, Minister, you'll know on this side of the benches, we have some great ideas for reform—you may not always agree with those—and I am, of course, happy to work with you in considering these, and look forward to that continued engagement. Thank you very much.