New measures to reform local tax system in Wales become law

Measures to reform the local tax system in Wales, including non-domestic rates and council tax, have become law following the official sealing of the Local Government Finance (Wales) Act.
The new legislation, which was passed by the Senedd in July, establishes a series of changes to improve the tax systems. It will make them fairer and work better for the future needs of Wales, by ensuring local taxes reflect economic circumstances more regularly.

It has introduced important changes to the local tax system and created a framework for a modern Wales, providing the necessary levers to adapt local taxation in the future, as circumstances and priorities change.

Attending the sealing ceremony, First Minister Eluned Morgan, said:

“Extensive research and experience, especially during the Covid-19 pandemic and cost-of-living crisis in recent years, has shown that our local tax systems need to be more agile so that we can respond to changing conditions for people and businesses.

“I’m pleased the Local Government Finance (Wales) Act provides the framework we needed to modernise both our non-domestic rates and council tax systems in the future. Local taxes help fund essential public services such as schools and social care, from which we all receive a huge benefit.

“I’d like to thank everyone involved in this landmark Act, in particular local government, and organisations representing households and businesses.”


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