Issue - meetings

The content of the draft response to the Government's consultation on reforming Council Tax in Wales was approved.

The report was submitted by Cllr. Ioan Thomas. 

DECISION

The content of the draft response to the Government's consultation on reforming Council Tax in Wales was approved.

DISCUSSION 

The report was submitted noting that the Welsh Government had submitted the paper to a consultation setting out options for how far and how quickly there would be change in terms of Council tax reform. It was noted in terms of the pace of change that it ranged from completion by April 2025 to April 2028, and that how far the reform would go varied from very small scale to a wider reform.

It was highlighted on average that the price of properties in Wales had increased by around 150% between 2003 and 2022, however the increase across Wales had not been consistent. It was explained that Gwynedd had seen the 7th highest increase throughout Wales during the period, and as a result that an above average number could move up at least one band in Gwynedd.

It was explained that it appeared that more Gwynedd taxpayers would lose than would gain under any of the reforms proposed, it was noted in general that there was a strong possibility that around 40% of the people of Gwynedd would pay a few hundred pounds more in taxes as a result of the reforms. It was expressed that, in terms of reform, it could be argued that house prices had increased in some areas but individuals' salaries had not, which could lead to many people being unable to afford to pay their Council Tax bill.

Observations arising from the discussion

·         It was noted that option 3 which was a wider reform led to the creation of a fairer system, with more bands available.

·         It was highlighted that any overall increase in the Council's taxation base would mean a reduction in the grant received from the Government.  However, it was stressed that the reforms were not intended to raise more tax as the national total would remain the same, but would be fairer.