Proposed implementation of updated council tax property list in Wales from 1 April 2025

The Welsh Government set out a proposal to implement an updated property list with effect from 1 April 2025, based on valuations from 1 April 2023, in its consultation A Fairer Council Tax, published on 12 July 2022¹. The document describes the proposal as part of a wider package of reforms to council tax in Wales, which it calls "the starting point on a journey to a fairer and more progressive system"¹.

The consultation states that there are around 1.5 million domestic dwellings in Wales liable for council tax, and that each property is placed in one of nine bands, A to I, based on property values on 1 April 2003, described as the last time the council tax base was updated in Wales¹. The council tax system was first introduced in Wales, England and Scotland on 1 April 1993, and an additional band, Band I, was added for the highest value properties in an exercise that took effect from 1 April 2005¹.

The document gives an indication of how a revaluation could move properties between bands. It says around half of properties would move bands, with 26% moving up and 26% moving down, and nearly half staying in the same band¹. It also cites a report suggesting house prices across Wales had increased by 150% between 2003 and 2022¹. On the current system, it says the amount of council tax charged for band I properties is three and a half times as much as band A, yet homes in the top band could be worth at least nine times as much as those in the bottom band¹.

The consultation also sets out context on the tax base and support. It says council tax makes up around a fifth of total council spending, and that taxpayers collectively provide over £2 billion a year towards the £10 billion cost of local services in Wales¹. It states that half of households in Wales receive some form of discount or reduction, and that nearly half (48%) receive some form of support¹. On awareness and fairness, it reports that in a recent survey 50% of respondents said they knew very little or nothing at all about council tax, and 57% disagreed with the statement that the council tax system is fair¹. It also notes there are currently 58,000 flags on the Welsh council tax list out of 1.5 million properties¹.

The consultation was open for responses until midnight on Monday 4 October 2022¹. It states that a Phase 2 consultation planned for 2023 would outline any changes in more detail, while views were sought at that stage on the use of information, the appeals framework or any other administrative aspect of the council tax system¹. The document also records that the maximum premium permitted by councils would be 300% from 1 April 2023, and that on 1 April 2013 the Council Tax Reduction Scheme replaced Council Tax Benefit in Wales, following the abolition of Council Tax Benefit on 31 March 2013 under the Welfare Reform Act 2012¹.

Why it matters for households

The proposal concerns the valuation date used to place homes in council tax bands in Wales. The current bands rest on property values at 1 April 2003, and the consultation proposes an updated property list from 1 April 2025 based on values at 1 April 2023¹. Because a revaluation updates every property's band rather than simply raising bills, the consultation says a rise in a property's value does not necessarily mean its council tax bill would increase¹. Its estimate that around half of properties would move bands, split evenly between moves up and down, indicates that some households would see a band change and others would not¹.

The document also links the exercise to the wider framework of discounts, exemptions and premiums, and to the Council Tax Reduction Scheme that supports low-income households¹. It notes that half of households in Wales receive some form of discount or reduction¹. For households in Wales, the practical effect of any change would depend on the new bands and tax rates chosen, which the consultation says would be set according to the latest data and considered in more detail at a later stage¹.

What happens next

The consultation closed on 4 October 2022¹. The document states that a Phase 2 consultation planned for 2023 would outline any changes in more detail¹. It also says the Welsh Government wants to introduce rolling revaluation cycles to keep the tax burden fairly distributed on a more regular basis, described as a first for the history of the council tax¹. No further implementation dates beyond the proposed 1 April 2025 effective date and the 1 April 2023 valuation date are given in the document¹.