Welsh council tax revaluation goes ahead

You won't pay more council tax simply because your property is worth more, said the minister

There will be "winners and losers" from a big update to council tax in 2025, the Welsh finance minister has said.

Rebecca Evans confirmed officials have been asked to start revaluing homes for the first time in 20 years.

Bands will change in April 2025, based on an assessment of what homes were worth in April this year.

Ms Evans said: "I recognise these are complex changes and there will be winners and losers."

"Every year that we continue with the current arrangements brings more unfairness often experienced most acutely by the poorest households."

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The Valuation Office Agency has been commissioned to revalue homes "using the latest technology", she said.

Wales' last revaluation was in 2003. In England and Scotland, bills are still based on property values from 1991.

Regular updates to the value of Wales's 1.5m homes are promised "to keep council tax fair in the future".

Critics say the tax is unfair because it takes a bigger proportion of income from the least well off.

Ms Evans said "not a penny more in overall revenue" would be raised from the tax, adding: "The benefits will be felt in the pockets by those most in need by the end of this government term."

Rebecca Evans: "I will deliver a fairer council tax in April 2025"

The timetable means the tax changes will happen 12 months before the next Senedd election.

Increased property prices do not necessarily mean bills will rise because homes are banded on their relative value, Ms Evans said.

"Some people are worried that their homes have increased in value since the last revaluation 20 years ago. That's probably the case for almost all properties," she said.

"But it's not a case that just because your home has increase in value that you will see an increase in your council tax because, actually, what matters is the relative position of your home across all properties in Wales."

Research on behalf of the government in 2019 found a revaluation at that point would mean around half of homes saw no change in council tax, a quarter would pay less and a quarter would pay more.

But that was based on keeping existing nine bands, something which is still up for consideration, the minister said.

'Disproportionately impacts poorer areas'

Further details on what the new system will look like will be revealed later in the year.

Deductions and exemptions from the tax are also under review, and "transitional arrangements" are promised to help introduce the changes.

Conservative MS Sam Rowlands said: "I would like to know who you think those winners and losers will be.

"People are going through difficult times at the moment.

"We know the pressures of Putin's illegal war in Ukraine, and it's essential we protect people as much as possible instead of creating more, to use your word, losers in the system."

The changes are part of Labour's co-operation agreement with Plaid Cymru.

Plaid MS Cefin Campbell said: "The current council tax system we have is nearly twenty years out of date, contributes to wealth inequalities and disproportionately impacts poorer areas of Wales."