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Council Tax

Is this devolved to Wales?

Where is this happening?

What's happening?

Why is this happening?

Who has been affected?

What's happening?

Why is this happening?

Who has been affected?

Sources of funding for local government (£ millions) in Wales (source)

Band D average bill (rounded to nearest £) 2016-17 to 2026-27 (source)

£ 2.45 billion Total expected to be collected by Wales' 22 local authorities (2026-27)

Who has raised this at the Senedd?

Elin Jones MS

Finance Minister

Sarah Cooper-Lesadd MS

Backbencher

Carrie Harper MS

Chair: Constitution & External Affairs

Cai Parry-Jones MS

Shadow Finance Minister

Nigel Williams MS

Backbencher

Andrew Griffin MS

Chair: Public Accounts

Thomas Montgomery MS

Shadow Skills Minister

Mike Hedges MS

Backbencher

Janet Finch-Saunders MS

Backbencher

Elin Jones MS

Finance Minister

Sarah Cooper-Lesadd MS

Backbencher

Carrie Harper MS

Chair: Constitution & External Affairs

Cai Parry-Jones MS

Shadow Finance Minister

Nigel Williams MS

Backbencher

Andrew Griffin MS

Chair: Public Accounts

Thomas Montgomery MS

Shadow Skills Minister

Mike Hedges MS

Backbencher

Janet Finch-Saunders MS

Backbencher

What are the party positions on this?

Plaid Cymru backbenchers said that council tax referendums would give councils less flexibility to manage their own finances, and lead to situations where they choose to cut services instead of raising taxes.

Where that cap (on council tax) bites services are cut rather than referendums held. Birmingham, Nottingham, Croydon, Thurrock and Woking have all issued section 114 notices in recent years, effective local bankruptcy in a system with referendums and still no referendums. It is clear that even though this mechanism exists in practice in England, it is either barely used or superseded because circumstances are so dire.

A referendum costs a local authority somewhere between £150,000 and £600,000 to run. That is not a large sum against the total budget, but the total budget is the wrong denominator. Between 80-85% of a council's spending is committed to statutory duties, teacher salaries, statutory social care, waste collection, additional learning needs. We all know that these need to be accounted and budgeted for. A referendum cannot be taken from those. It comes from discretionary services or from unallocated reserves.

We already elect councillors to make these decisions on behalf of our communities….Now, of course councils should be challenged, they should be transparent about their budgets, they should explain why increases are necessary, and they should consult meaningfully with residents about their priorities. But we should also recognise that every council faces different pressures, different levels of need, and different financial circumstances.-

Reform UK believe that the public should be given an active say in high council tax increases, believing the policy has led to spending restraint in England.

Greater efficiency is one reason Reform wants to introduce a democratic lock on annual council tax increases above 4.99%. We see this policy working as an active deterrent against wasteful and unnecessary spending. If Welsh councils want to raise tax above this threshold, they must make a convincing case through a local referendum. It is up to local people to decide whether their money is being spent efficiently.

We need to bring back trust in local government, Llywydd, and councils should be able to communicate with the public and justify the reasons for the increases in council tax....If a council wants to raise more, they should make the case and win the local vote.... If they really believe that, then surely they've got nothing to fear from letting residents decide.

I don't want anyone to think I'm suggesting councils have an easy job; they don't. Social care costs are rising, schools are under pressure, and councils are being asked to deliver services with increasingly stretched budgets. But that brings me to something else that matters. Is the way we fund local government in Wales actually fit for purpose?

Not a single local authority dares go to the electorate this year in England because they recognise that people are under enough financial pressure. Unsurprisingly, these rules have already made careful financial management in local authorities the preferred option, compared to simply asking residents to pay evermore taxes. Inflation-busting tax rises are no longer the default option in England. Currently, these protections offered to English taxpayers are not afforded to Welsh taxpayers.

Labour oppose the idea of council tax referendums, and believe Reform UK in particular have been hypocritical on the issue based on their record in English local government.

Council tax rises are driven by the need to meet demand, meet their statutory obligations and council tax payers' wishes. We must consider that budgetary pressures on local authorities are not a simplistic mathematical exercise. Why 4.99%? I know it makes a good headline. Can Reform publish the calculations behind it? Which services would they consider scrapping? Are they seeking statutory services to be made non-statutory in order for councils to legally stop services?

In Reform-led Kent, the budget financial risk register reveals an immediate exposure of £411 million—that's it, £411 million—indicating the scale of uncertainty facing Kent's finances. Risks include potential overspends, underfunded services, the pressure of increasing demand in social care, and infrastructure upkeep.

The Conservatives support the principle of local referendums on council tax increases of 5% or more, and introduced the policy in England.

We as a party, we fight to keep all taxes low. It is the solid foundation of the Conservative Party to allow those who work hard, and our cash-strapped pensioners, to have more money in their pockets, not just at the end of the week or the end of the month, but day in, day out. Now, we have long advocated....the idea of a 5% cap on council tax increases. If you look at our own local authority in Conwy, over the past three years nigh on 10% —9.8%; 9.6% —and people are getting less.

Green MSs haven’t said anything on this, but voted against Reform UK’s motion on council tax referendums.

Test Test Test

Jane Dodds hasn’t said anything on this specifically.

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Who is responsible?

Elin Jones MS

Finance Minister

What have ministers said?

Plaid Cymru does not believe that the Welsh Government should impose arbitrary and fixed national targets on council tax rises, which disregard local circumstances and volatile and diverse economic contexts. Annual decisions about local taxes should be made by locally elected councillors who are accountable to the communities that they serve.

Local referenda....would come with significant costs and bureaucracy needlessly, at a time when resources are better directed at protecting front-line services. Only one local referendum has ever been called under this policy in England, in Bedfordshire, with the police and crime commissioner, and it was estimated that that referendum cost around £600,000 to taxpayers.

What's being done about this?

What do the Welsh Government want to do?

Does this need a new law or regulations?

How long will this take?

What do the Welsh Government want to do?

Does this need a new law or regulations?

How long will this take?

What have the Senedd's Committees said?

Nothing has been discussed yet.

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Relevant Votes

Date	Motion Number	Subject	Binding Vote?	Votes For	Votes Against	Absent/No Vote	Outcome
14/10/26	NDM9330	As amended	No	51	35	8	AGREED
14/10/26	NDM9330	Amendment – Local councils are accountable for council tax	No	51	35	8	AGREED
14/10/26	NDM9330	Hold local referendums for council tax increases above 4.99%	No	35	51	8	REJECTED