Decision on revaluing Welsh homes to be made by government

The Welsh government is set to announce whether a major revaluation of homes will happen, following uncertainty over whether ministers will go ahead with planned changes to council tax.

Reforms that were postponed in 2024 estimated that 800,000 homes could see cuts in council tax bills, and that 470,000 of the most expensive properties could see increases.

The Welsh Conservatives called for the revaluation to be scrapped, saying it could increase bills for struggling families, while Welsh Labour said not going ahead with it would call into question "Plaid's progressive values".

Finance Minister Elin Jones is expected to update the Senedd on the government's plans on Tuesday.

Welsh homes have not been revalued for 23 years, and Plaid Cymru had repeatedly failed to commit to a revaluation since the party came to power in May despite campaigning on making council tax "fairer".

The previous Welsh Labour government delayed the plans for a revaluation in 2024, which was one of the reasons given for why Plaid Cymru pulled out of its co-operation deal that year.

Despite the delay the Welsh Labour government passed legislation committing to a 2028 revaluation.

Delaying that would require a Senedd vote - and the Plaid government would have enough numbers in the parliament to do so if the Tories offered its support.

Council tax was established in the early 1990s by the Conservative UK government, and has long been criticised for being unfair because tax bands are based on property prices - not on things like people's incomes or how many people live in a property.

Plaid Cymru's Senedd manifesto promised to make council tax fairer, declaring that the current system was "long overdue for reform".

Speaking at Plaid's conference just over a fortnight ago, First Minister Rhun ap Iorwerth said going ahead with a revaluation was not a "yes or no" question.

"We need to make sure that we are making the right decision that does not have unintended consequences, that it is affordable, that it is actually helping people in the way that is best. We have to weigh up the number of options," he said.

Ap Iorwerth said that his preference would be to scrap council tax in its current form, but that to do so would be difficult.

He said: "I'd rather that there was something of a mix of income and wealth and property, but doing that is very, very complicated."

The Institute of Fiscal Studies (IFS) had previously praised the former Welsh Labour government for "taking the lead" on tackling the issue.

It said the existing plans "would ensure not only is council tax brought up to date, but it remains so".

It said that it was not true that a revaluation "would lead to big bill increases across the board".

"The last Welsh government said it aimed for any revaluation and wider reform to be revenue-neutral – redistributing bills between households, not neither increasing nor decreasing the overall amount raised," it said.

Joe Rossiter, from the Institute for Welsh Affairs, said if the Plaid Cymru government was to "stay true" to its Senedd manifesto pledge, "then revaluation is the starting point, ensuring the tax is based on property values today, rather than over 20 years ago".

"If they choose to reverse their position on revaluation, it would be a failure to grasp this necessary nettle."

Reform UK Wales' finance spokesperson Cai Parry Jones said: "Inflation-busting council tax rises have hammered families here in Wales, and any changes to the system must not pile on further pressure."

Sam Rowlands, Welsh Conservative finance spokesperson, said: "Plaid Cymru must cancel the planned council tax revaluation... which will push households into higher bands and increase council tax bills at a time when families are already struggling with the cost of living."

Welsh Labour's finance spokesperson, Huw Thomas, said: "In 2024, Plaid Cymru criticised the time frame [on council tax] for not taking effect soon enough and in their manifesto made a commitment to make council tax fairer.

"Inaction on council tax reform now would call into question Plaid's progressive values."

A spokesperson for the Welsh Greens said: "Plaid Cymru need to seize the opportunity to radically overhaul Welsh taxes to make them the most progressive in the UK."