Plaid Cymru’s tax bombshell could see taxpayers paying double Council tax and hitting rural communities and farmers hard in the pocket, according to research by Carmarthenshire Labour Leader.
This week, Plaid Cymru announced proposals to reform council tax in Wales. Under the plans, the party, if it forms the next Welsh Government, would seek to revalue properties, and then substantially increase the amount of council tax paid by residents in higher value properties.
The proposal comes following the publication of a report by the Institute for Fiscal Studies, commissioned by the Welsh Government, which considers the risks and benefits associated with council tax reform in Wales.
Under the most extreme measures, supported by Plaid leader Adam Price MS, council tax would more than double for higher value properties, costing taxpayers up to £4,200 annually.
Properties under Band I council tax would rise from £3,890 to £8,130 annually, while properties valued at £200,000 would be expected to pay an additional £150 a year under the plans.
The Institute for Fiscal Studies warns the proposed reforms could result in landlords benefiting from the scheme, rather than tenants in the private rental sector, and reduce the value of properties for homeowners and those with mortgages.
This announcement comes on the back of Plaid Cymru Councillors’ inflation-busting council tax increase in Carmarthenshire, costing families around £100 a year.
Prospective Welsh Labour MS Rob James argues that an “ill-conceived reform” of council tax by Plaid would hurt rural communities and farmers the most. Cllr Rob James also warns that someone living in a £200,000 house in rural Carmarthenshire may have purchased the property many years ago and may not have the income needed to meet the increased council tax burden.
Reacting to the announcement, Cllr Rob James stated “I am astonished by Plaid Cymru’s commitment to hammering council taxpayers during a pandemic.
“They are already increasing the tax burden on Carmarthenshire families by around £100 a year and now they are supporting plans to double council tax for some homeowners.
“Whilst I agree that the current council tax system could benefit from reform, Adam Price’s disingenuous attempts to suggest that a Plaid Cymru Government would be a land of milk and honey is simply incorrect.
“The plans supported by Adam Price could double council tax for homeowners, reduce property values for those with mortgages and ultimately benefit landlords, not renters.
“Since the UK Government devolved council tax benefit in 2013/14, the Welsh Labour Government has supported over 15,000 households a year in Carmarthenshire, with many low income families paying much less or or no council tax at all.
“I am concerned that these plans could cause a significant issue for those that may be asset rich, yet income poor. Property values have risen considerable in the last thirty years and there will be many people living in Carmarthenshire that purchased their property for considerable less when working that may be forced to move for failure to meet this tax hike now that they are retired.
“I support a progressive council tax system for Wales that supports families experiencing difficulties, yet we must ensure we do not support an ill conceived reform that may benefit landlords more than renters, and risk devaluing properties by thousands of pounds.
“A Plaid Cymru government is a government Wales cannot afford to have.”
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Did Plaid Cymru get a right of reply? Would be sloppy journalism if not.
Hi here is Plaid Cymru’s response to this article which,thank you
https://www.westwaleschronicle.co.uk/blog/2021/02/11/cllr-cefin-campbell-labour-opposition-to-council-tax-reform-is-both-baffling-and-shameful/
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