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Tag: Rebecca Evans

  • Rebecca Evans – 2022 Statement on the Welsh Consultation on a Fairer Council Tax

    Rebecca Evans – 2022 Statement on the Welsh Consultation on a Fairer Council Tax

    The statement made by Rebecca Evans, the Welsh Minister for Finance and Local Government, in the Welsh Parliament on 16 December 2022.

    I am pleased to publish today a summary of responses to the Welsh Government’s Phase 1 consultation on A Fairer Council Tax. The consultation outlined an ambitious programme of reforms as the starting point on our journey towards meeting the Programme for Government and Cooperation Agreement commitment to deliver a fairer and more progressive council tax for Wales.

    We know that council tax helps to fund essential public services, like schools and social care, from which we all receive huge benefits. Council tax is also a key policy lever for ensuring important financial contributions from households are fairly distributed. I am committed to reforming the system so that it reflects our current and future economic circumstances, funds services that benefit everyone, builds in regular updates to keep the tax fair in the future, and remains a local tax that connects people with communities.

    The consultation sought early views from individuals, organisations and key stakeholders on three broad areas of reform including: a proposed property revaluation and rebanding exercise with regular updates in the future; a review of council tax discounts, disregards, exemptions and premiums; and a review of our national Council Tax Reduction Scheme. The consultation was clear that reforms would not seek to increase the total amount of council tax raised overall from council taxpayers.

    The consultation ran from 12 July to 4 October 2022 and received over 1,000 responses, reflecting a wide spectrum of views and interests. I am grateful to everyone who participated.

    I have carefully considered the consultation responses and we will now reflect on the information provided in response to the consultation alongside detailed evidence about the operation of the council tax system and our ambitions for the reform of council tax.  These considerations will inform the next steps we take to make council tax fairer. Where we intend to make future changes, I am committed to outlining these in detail in a Phase 2 consultation later in 2023.

    The summary of consultation responses is available here.

    This important reform agenda is part of our Cooperation Agreement with Plaid Cymru. I will continue to work closely with the Designated Member, Cefin Campbell, as well as with key stakeholders including local government, property valuation and socioeconomic specialists, and a range of organisations that represent the people of Wales. I am also committed to continuing to engage with citizens about the purpose and delivery of a fairer system.

    It remains my ambition to achieve meaningful reform over the course of this Senedd term, as Wales continues to face unprecedented challenges and a cost-of-living crisis. The benefits of a more progressive system are well-documented and we must continue our work to reduce wealth inequalities and disparities across Wales.

    I will keep Members informed of developments as the work progresses.

  • Rebecca Evans – 2022 Welsh Government Response to the UK Autumn Statement

    Rebecca Evans – 2022 Welsh Government Response to the UK Autumn Statement

    The statement made by Rebecca Evans, the Welsh Minister for Finance and Local Government, on 17 November 2022.

    The Chancellor of the Exchequer today presented his Autumn Statement against the backdrop of inflation at a 40-year high and the ongoing cost-of-living and cost-of-energy crisis for people, public services and businesses.

    The Office for Budget Responsibility (OBR) has confirmed the UK economy is in the early phase of a recession that will likely be lengthy and which will result in real and significant costs for people across the UK. The rate of unemployment is expected to increase substantially. People’s household disposable incomes are expected to fall by more than 7% over next two years – the biggest fall on record – to levels last seen in 2013.

    Ahead of the Autumn Statement, I called on the Chancellor to invest in people and public services. This was partially reflected today, with additional funding over the next two years but it does little to address the immense challenges created by rising inflation.

    Our overall settlement over the three-year spending review period (2022-23 to 2024-25) is still worth less in real terms than it was at the time of the Spending Review last year. We will receive an additional £1.2bn over the next two years (2023-24 and 2024-25) but our overall budget in 2024-25 will be no higher in real terms than in the current year and our capital budget will be 8.1% lower.

    As the London School of Economics, OECD and others have stated, additional capital investment is vital to improve productivity and growth, yet there was little of substance in the Chancellor’s statement to support our energy security and decarbonisation.

    The tax measures announced today do mean that those on higher incomes, and more able to afford it, are being asked to contribute more to help fill the hole created by the UK Government’s mismanagement of public finances. However, everyone is being asked to pay more.

    I am concerned about the UK Government’s stealth tax increases on workers with its decision to freeze income tax thresholds, particularly the personal allowance. As more workers are drawn into higher tax bands, a greater proportion of their pay will immediately be lost. People in Wales are likely to be disproportionately affected by this measure.

    The UK Government has listened to my suggestion to increase the windfall tax on the energy sector, however it could have done more to close loopholes that enable oil and gas companies to offset their tax liability if they invest profits in the UK. There was also scope for the UK Government to expand this tax to cover the banking sector.

    Targeting support to the most vulnerable is an absolute necessity and it was essential that the Chancellor responded to our call to raise pensions and benefits in line with inflation. There was nothing in the statement about additional measures which could have made a practical difference to the cost-of-living crisis, such as help for those on pre-payment meters, support for credit unions and further action to prevent people becoming homeless.

    While the Chancellor’s Statement provided further details of the energy price guarantee for homes, from April next year the average household can still expect to see a further increase of £500 in its annual energy bill and there was no clarity for businesses about what tariffs they will be paying next year.

    Inflation has eroded the Welsh Government’s budget to worrying levels and local authorities and NHS organisations are reporting significant shortfalls in funding as a result of inflation, pay pressures and rising energy costs. The Chancellor’s statement today fails to address this significant funding gap.

    To make up this shortfall and secure the short-term future of the vital public services on which we all rely, we needed to see our budget increase in line with inflation. This has not happened.

    As a Welsh Government, we will continue to work to prioritise our budgets to shield the most vulnerable and maintain our commitment to create a stronger, fairer and greener Wales as we prepare our draft Budget 2023-24.

    We will carefully consider the detail of today’s statement as we work towards publication of the draft Budget next month.

  • Rebecca Evans – 2022 Statement on Council Tax Premiums in Wales

    Rebecca Evans – 2022 Statement on Council Tax Premiums in Wales

    The statement made by Rebecca Evans, the Minister for Finance and Local Government in Wales, in the Welsh Parliament on 11 November 2022.

    On 24 May 2022, I announced the next steps being taken by the Welsh Government, following our consultation on local taxes for second homes and self‑catering accommodation. These steps form part of our plans to ensure property owners make a fair contribution to the communities where they have homes or run businesses. This work, in turn, contributes to the Welsh Government’s three-pronged approach to addressing the impact that large numbers of second homes and holiday lets can have on communities and the Welsh language.

    Following our consultation, the Welsh Government is of the view that properties let out as self-catering accommodation on an infrequent basis should be liable for council tax. We have therefore legislated to increase the number of days for which self-catering  properties must be available to let or actually let in order to be classified as non‑domestic. The new letting criteria will apply from 1 April 2023 and will ensure that self-catering properties are classed as non‑domestic only if they are being used for business purposes for the majority of the year.  We have also legislated to increase the maximum level at which local authorities can decide to apply council tax premiums to second homes and long-term empty dwellings to 300% from 1 April 2023.

    I recognise the strength of feeling among self-catering operators in response to the changes and have listened to the representations from individual businesses and industry representative bodies. We have considered whether further measures are needed to accompany the changes to the local taxes.

    The Welsh Government recognises that some self-catering properties are restricted by planning conditions preventing permanent occupation as someone’s main residence. The Council Tax (Exceptions to Higher Amounts) (Wales) Regulations 2015 were made to accompany the introduction of the discretionary powers for local authorities to apply council tax premiums and prevent specified types of second homes and long-term empty dwellings from being charged a premium.  These regulations already provide for an exception from a council tax premium for properties restricted by a planning condition preventing occupation for a continuous period of at least 28 days in any one‑year period.

    I am publishing today a technical consultation to invite views on the draft Council Tax (Exceptions to Higher Amounts) (Wales) Regulations 2023.  The draft Regulations extend the existing exception to apply to properties with a planning condition which specifies that the property may only be used for short term holiday lets or which prevents their permanent occupation as a person’s sole or main residence. Such properties would become liable for council tax at the standard rate if they do not meet the letting criteria for classification as non-domestic property but they could not be charged a premium. This is consistent with our policy view that property owners should make a fair contribution to local communities either through local taxation or through the economic benefit they bring to an area.

    It is intended the application date for introducing the extended exceptions will be 1 April 2023, in conjunction with the changes to the letting criteria and to the maximum council tax premium. It will therefore apply only to properties that become liable for council tax after 1 April 2023.

    I am also publishing a consultation on the revised guidance on council tax premiums for long‑term empty dwellings and second homes. This includes additional options that are available to local authorities in the event that self-catering properties restricted by planning conditions do not meet the letting criteria.

    The consultation on the draft guidance will run alongside the technical consultation for a period of 6 weeks. Responses are requested by 22 December 2022. All responses will be taken into account in considering any further developments.

    As part of the Cooperation Agreement with Plaid Cymru, we are committed to taking immediate action to address the impact of second homes and unaffordable housing in communities across Wales, using the planning, property and taxation systems. As we continue to progress the package of measures and drawing on the latest evidence base, we will keep under constant review the range of levers available to use and how they may be deployed most effectively to meet our policy objectives and avoid unintended consequences.

  • Rebecca Evans – 2022 Comments on Impacts of Austerity on Wales

    Rebecca Evans – 2022 Comments on Impacts of Austerity on Wales

    The comments made by Rebecca Evans, the Welsh Minister for Finance and Local Government, on 25 October 2022.

    By announcing reckless uncosted tax cuts for the rich, the UK Government lost control of the economy. Now the new Chancellor wants us all to pay for its failures with deep spending cuts.

    We are facing a new damaging era of austerity, which would threaten jobs, businesses and public services.

    The Chancellor could protect public services by using his tax levers more fairly and increase investment to get the economy moving in the right direction. He could help people pay their bills by increasing benefits in line with inflation.

    As we look ahead to our Budget, we need the UK Government to take action to avoid the type of destructive austerity that will further damage our economy and the public services so many of us rely on.

  • Rebecca Evans – 2022 Speech on Chancellor’s Statement on Medium Term Fiscal Plan

    Rebecca Evans – 2022 Speech on Chancellor’s Statement on Medium Term Fiscal Plan

    The speech made by Rebecca Evans, the Minister for Finance and Local Government in the Welsh Assembly, on 17 October 2022.

    In the wake of the ongoing turmoil caused by the mini-budget, the new Chancellor has now reversed most of the tax changes made a few short weeks ago in the hope of stabilising the financial markets and reducing the size of the hole fracturing public finances.

    The economic outlook was already challenging, as a result of EU exit, the pandemic and cost-of-living crisis.

    But the perilous situation which the UK’s public finances are now in is inexcusable. This is a direct result of the flawed and reckless measures announced in the UK Government’s mini-budget on 23 September and which were the central pillar of the Prime Minister’s leadership campaign.

    The fall-out from the mini-budget has been mayhem in the financial markets; mortgage costs have risen sharply, as has the cost of government borrowing; the Bank of England has had to take extraordinary measures to prevent a collapse in pension funds; and household budgets have been stretched even further.

    Our economy and UK finances are now in a far worse situation than they were less than a month ago as a result.

    The Chancellor’s statement today has signalled a new era of austerity.

    Those hit hardest will be the households already struggling to make ends meet. Our public services are facing cuts, and jobs could be lost. The actions announced by the Chancellor will shrink the economy and make the recession deeper and last longer – the opposite of the so-called plan for growth.

    While the Chancellor stated the UK Government’s priority in making the difficult decisions that lie ahead will always be the most vulnerable, he offered nothing of comfort to them today. The announcement of changes to energy support only creates additional uncertainty for households and businesses which are already worrying about costs.

    The UK Government has repeatedly failed to take opportunities to improve our energy security for the future and address the climate emergency. It must be more ambitious on investment in green energy and decarbonisation.

    The Chancellor must use his 31 October statement to provide reassurance that we will not see spending cuts that will affect public services, jobs, and our economy. Instead, he has a real opportunity to provide much-needed support to the most vulnerable, funded by using the UK Government’s tax levers more equitably, including taxing the windfall gains in the energy sector.

    Inflation has already significantly eroded the Welsh Government’s budget settlement to worryingly low levels. This Statement continues to fall far short of what is needed to meet the very significant challenges faced by our public services and workers. The UK Government must provide us with the additional budget flexibilities to support our response in Wales.

    While we will not be able to protect people and services from the full force of the UK Government’s actions, we will do everything we can to help households, services and businesses through this crisis.

    We will publish the Welsh Government’s Budget on 13 December and provide a considered and careful response to the crisis taking into account the full fiscal forecast provided by the Office for Budget Responsibility to provide as much certainty as possible for our public services and partners.

    While our resources are limited, and today’s announcement will do nothing to alleviate the already challenging funding position facing the Welsh Government, our priority will be to shield the most vulnerable and create a stronger, fairer and greener Wales that safeguards the wellbeing of our future generations.