Monmouthshire residents face council tax bombshell under Welsh Government plans

Monmouthshire residents face “astronomical” council tax hikes if proposals to revalue homes go ahead, an MP has warned.

The revaluation of all 1.5 million properties in Wales is being suggested in a consultation published by the Welsh Government.

Under the reforms – entitled ‘A Fairer Council Tax’ – new bands would be created and new tax rates for each band would be set.

Included in the consultation, which runs until 4 October and can be viewed online, are links to reports by the Institute for Fiscal Studies (IFS) and University of Sheffield estimating the extra costs people will face in different parts of Wales.

Monmouth MP David Davies said both reports suggest Monmouthshire residents will be hit by astronomical rises in the amount of council tax they pay.

“A careful reading of the consultation document and attachments shows that nearly four out of 10 homeowners in Monmouthshire will move up a band and face paying hundreds of pounds more each year in council tax, while less than one out of 10 would pay less by moving down a band,” said Mr Davies.

“Monmouthshire residents already face an unfair council tax burden because it is the lowest funded local authority area in Wales. The shortfall between what is received from the Welsh Labour Government and what the council spends is made up by council tax. Because the initial funding is already low, our council taxes are far higher than they should be.”

Mr Davies said before the Welsh Government even considers a revaluation, it should bring forward a fairer funding formula for allocating money to the 22 local authorities in Wales.

“At present, Monmouthshire is being used as a cash cow and this is about to get a lot worse,” he added.

Shirenewton ward councillor Louise Brown, who has analysed the consultation in detail, described the proposals as “ill thought-out” and “extremely unhelpful” during the global cost of living challenge.

“The Revenue Support Grant from the Welsh Government already penalises Monmouthshire County Council by providing less government support per head of population than other local authority areas,” said Cllr Brown.

“Any change in council tax would unfairly penalise Monmouthshire taxpayers further by expecting them to pay even more than their fair share towards council services.

“It is a totally unfair non-evidenced proposal which needs abandoning and incorrectly assumes that capital wealth in terms of property values is equivalent to income wealth.

“People living in an area have no control over the market price of housing and in a cost of living crisis, local residents are already struggling with their household bills.”

Monmouth MS Peter Fox added: “The people of Monmouthshire have been short-changed for too long by Labour, but this latest revelation is yet another slap in the face.

“Families across Monmouthshire are struggling to make ends meet but are now faced with the real threat of their council tax being hiked, meaning they’ll be hundreds of pounds a month out of pocket.

“I have been clear that the funding formula for local government must change to allow councils, like in Monmouthshire, to be treated fairly and this needs to happen before drastic changes to council tax revaluation are considered.

“If Labour really want to support local people, they can help councils freeze council tax through this cost of living crisis.”