Council leader urges residents to have their say on plans for Council Tax reform
The leader of Wrexham Council is encouraging residents to have their say on the Welsh Government’s plans to reform Council Tax.
Last month, as part of the Co-operation Agreement with Plaid Cymru, a consultation on proposals which could change how much Council Tax households pay was launched.
Currently there are nine bands in Wales which raises around £2.4 billion a year.
This helps to fund services such as schools, local libraries, social care to street cleaning. It also pays for around a fifth of spending by councils
However the Welsh Government says that current Council Tax system is “20 years out of date” – with people “living in homes in the lowest council tax bands paying a relatively higher amount of council tax in relation to the value of their homes, than people who live in higher value homes.”
The consultation includes different potential approaches designed to make the tax fairer, including adding new council tax bands, changing the tax-rates charged for each band, and reviewing discounts and reductions.
Proposals include completing a revaluation of all 1.5 million properties in Wales to ensure valuations are up-to-date and people are paying the appropriate amount.
This would enable different bands to be created with new tax rates chosen for each band.
The three options being considered include…
Minimal reform
- This would include a revaluation of properties to check they are up-to-date but keeping the current 9 bands and tax-rates, but the system would become more up-to-date and accurate under those rules.
- About 8 out of 10 households would see bills reduced or experience minimal change.
Modest reform
- A revaluation plus further reforms to the tax-rates charged for each band, to “spread council tax more fairly”. This would retain the nine existing bands but see an updating of property values
- This means bills for households in lower band properties would fall, and bills for those in the highest band properties would rise.
- According to Welsh Government data some properties would move up bands, some would move down bands, but most would stay in the same band.
- About 7 out of 10 households would see bills reduced or experience minimal change
Expanded reform
- This would include a revaluation plus further reforms including additional tax bands and changes to the tax-rates.
- This approach would see the number of bands increase from 9 to 12, adding 1 band at the bottom for the lowest value properties in Wales, and 2 more bands at the top, for the most expensive properties valued at over £1.2 million.
- The Welsh Government claim that people living in the lowest value properties would see bills fall, and those in the most expensive properties would see bills rise.
- Some properties would move up bands, some would move down bands, and most would stay in the same band, but those reductions would be greater, especially for those living in the lowest value properties
In parallel with this work, the Valuation Office Agency, is preparing to carry out a proposed revaluation of all 1.5 million homes in Wales to ensure valuations are up-to-date and in line with current property values.
The earliest date for any changes coming into effect is 1 April 2025. However, changes could be deferred until the next Senedd term, or introduced in stages.
Cllr Mark Pritchard, lead member for finance at Wrexham Council, said: “I would encourage as many residents as possible to take part in this Council Tax consultation so Welsh Government have a clear view of what the people of Wrexham want.
“This is an extremely important issue that affects all households in Wrexham and across Wales, so I urge you not to miss this opportunity to make sure that your views are taken into account.”
You can take part in the Welsh Government consultation on Council Tax reforms, here.
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