Mark Drakeford MS, Cabinet Secretary for Finance and Welsh Language
Today, a consultation is launched which marks the completion of our comprehensive review of council tax discounts, persons who are disregarded, and exemptions. This review forms part of delivering our Programme for Government commitment to a fairer council tax. This consultation invites views on proposed changes to categories and confirms the path forward for changes previously explored in 2023.
For over three decades, the various council tax discounts, disregarded persons, and exemptions have provided crucial support to individuals and families, particularly those facing financial challenges or where there are unique circumstances. Some categories also exist to ensure the council tax system can be operated efficiently. Our policies have been directed at ensuring equity and inclusivity within the system.
However, the majority of these arrangements have remained unchanged since the introduction of the council tax system in 1993. As a result of the Local Government Finance (Wales) Act 2024 being approved by the Senedd last year, we now have an opportunity to modernise these measures better to reflect the evolving needs of today’s society. Through this review, we aim to refine and update the categories, ensuring that council tax is fairer and more responsive to the needs of our communities. Our objectives in completing this review are clear: to enhance accessibility, to support and encourage eligible individuals to claim their entitlements, eliminate stigma associated with certain forms of assistance and target support effectively, reaching those who need it most. A number of technical criteria also required updating, modernising and consolidating, improving accessibility of the law in this complex area.
I would like to recognise and extend my thanks to the local authority practitioner working group, other stakeholders and third sector partners for their invaluable contributions to this review.
The consultation outlines the Welsh Government's proposals and seeks input from all stakeholders. It will be open for 12 weeks, until 15 August and I look forward to considering the contributions received. This consultation represents an important step forward in our commitment to modernising the council tax system, ensuring it delivers fairness and support where it is needed most.