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Welsh Government plan council tax reform as part of Labour-Plaid agreement

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Welsh Government have announced plans for a consultation next year on a package of council tax reforms.

The move forms part of the Labour and Plaid Cymru co-operation agreement commitment, which the party’s say will make Council Tax fairer.

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Options being considered include revaluation, a review of the Council Tax Reduction Scheme, and an evaluation of discounts, disregards, exemptions and premiums – with options for more fundamental reform in the longer term.

The Welsh Government say that reforms to council tax would be designed to ensure contributions from households are made as fairly as possible, while maintaining its role as a significant revenue stream which helps to fund essential public services including education, social care, and recycling.

Rebecca Evans, Minister for Finance and Local Government, said: “We want to modernise the council tax system and make it fairer. We want to make council tax more progressive in its design and delivery.

“This will be a significant piece of work and it will be important, through the consultation we launch next year, that we listen to people’s views and look at what can be practically achieved during this Senedd term – as well as leaving open the potential for further and more fundamental reforms in the longer term.

“I have been speaking with colleagues in local government, who are of course key partners in delivering what we set out to achieve. It’s important we co-design changes with them as well as work with partners in the Senedd and across Wales to find consensus on reform.

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“Changes won’t be brought in immediately and it will be important to focus work on the early building blocks needed for change, including revaluation. I want to achieve meaningful reform, with carefully considered ideas that everyone gets a chance to have a say on.”

This work will be carried out in collaboration with the Plaid Cymru Senedd Group, as part of the Co-operation Agreement between Labour-run Welsh Government and Plaid Cymru.

Siân Gwenllian, Plaid Cymru Lead Designated Member said: “Plaid Cymru will work closely with the Welsh Government and local government in Wales to reform what is an out of date, regressive and distortionary taxation. We have long argued that the current system disproportionately impacts poorer areas and change is long overdue.  We look forward to developing a fairer and more progressive system as we put our co-operation agreement with the Welsh Government into action.”

A consultation is planned with a view to introducing initial reforms during this Senedd term.

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