Council tax revaluation to be delayed in Wales to 2032

Wales' finance minister has said the Welsh government intends to delay a revaluation of homes for council tax to 2032.

Elin Jones said on Tuesday she could not afford the kind of financial relief she would want to put in place if she went ahead with a planned 2028 revaluation.

It means that the values used to decide what households will pay will remain based on house prices from 23 years ago.

Plaid Cymru had promised to make council tax fairer at the last election, and Jones said Wales' governing party was not abandoning the pledge.

The decision is subject to regulations which will need the approval of a majority of the Senedd - meaning an opposition party will have to agree.

Reform welcomed the decision, but the Welsh Conservatives called the decision "cynical" and said ministers should scrap it altogether.

Welsh Labour accused Plaid Cymru of failing to throw its weight behind progressive policies.

Council tax has been controversial since it was set up by the Conservative UK government of the early 1990s, because it is based on the value of homes rather than what people can pay.

Wales had one revaluation exercise in the early 2000s - in England and Scotland the tax is based on values from 1991.

The previous Welsh Labour government planned a revaluation to make it fairer, although ministers also delayed the timing from 2025 to 2028.

Plaid Cymru politicians had criticised the decision at the time. It was cited as a reason that the party pulled out of the co-operation agreement in 2024.

Jones told the Senedd that estimates showed a quarter of households could see their council tax band increase, a quarter could see it decrease, and half would see minimal change.

"We are in government at a time when our public services face significant pressures, and when communities across Wales rightly expect us to focus our resources on the priorities that matter most to them," she said.

Jones said she could not risk "new unfairness" to the tax system at a time household budgets are under significant pressure - but it would be "extremely challenging" to put in place the kind of support she wanted.

Temporary relief could cost up to £80m in the first year if the planned revaluation went ahead in 2028-29, she said.

Jones said she wanted to explore other ideas, including adding further bands for the most expensive properties.

People who lay council do so according to the band they are in, and Wales is the only UK nation to have added an extra council tax band.

Reform UK Wales' finance spokesman Cai-Parry Jones said he welcomed the pause, but said: "Kicking this into the long grass and breaking their manifesto pledge provides no certainty for households worried about rising council tax bills.

"Reform cannot support measures that could leave hard-working people facing higher bills," he added, and called for referendums for increases over 4.99%.

Welsh Labour finance spokesperson Huw Thomas accused Plaid of failing to back progressive policies in government.

Thomas said: "In opposition, Plaid claimed the moral high ground on this issue; in their manifesto they promised action.

"This retreat today isn't just hypocritical, it shows political and moral cowardice."

Sam Rowlands, Welsh Conservative finance spokesman, said: "It is clear that another revaluation would increase council tax bills at a time when household budgets are under significant strain.

"Instead of this cynical decision to simply delay this council tax bombshell, Plaid Cymru ministers should scrap it altogether.

"Council tax bills are already out of control in many parts of Wales. Instead of pushing households into higher bands, we need a cap on council tax bills at 5% and force a local referendum if any council attempts to breach the cap."