What assessment has the Minister made of the impact on taxpayers of Welsh councils consulting on council tax rises of up to 25 per cent?
With the pressures on the finances of hard-pressed households, following ten years of austerity, it is more important than ever that any increase in council tax is considered reasonable and proportionate. It is right for local authorities to seek input from residents on a range of budget scenarios. This is an important feature of local democracy.
Local authority leaders and councillors are democratically elected by communities, and it is for each authority to justify its decision on the provision of local services and council tax to residents. It is important they engage meaningfully with communities when making decisions that affect them.
In our Budget for 2024-25, we have provided local government in Wales with as generous a settlement as is possible in the current circumstances. Local authorities will receive £5.7 billion from the Welsh Government in core revenue funding and non-domestic rates to spend on delivering key services. This equates to an increase of 3.1% or £170 million on a like for like basis compared to the current year. I am providing additional funding of £1.3m to ensure no authority will receive less than a 2% increase.