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Council tax arrears see Welsh people owe £263m across the 22 areas
Council tax arrears see Welsh people owe £263m across the 22 areas

BBC News

time4 hours ago

  • Business
  • BBC News

Council tax arrears see Welsh people owe £263m across the 22 areas

The amount of overdue council tax owed by Welsh families has increased by 139% compared to pre-pandemic levels and by nearly a fifth in the year to the end of March, according to Welsh government payments - which are called arrears - have also increased sharply every year since 2022 when the cost of living crisis began biting, with £263m in total outstanding. Gwynedd has the highest level of overdue council tax - an average of £373 per liable household, while Neath Port Talbot has the lowest at £ a monthly council tax payment can have serious consequences because under the current rules you become liable to pay the entire year's bill after just two weeks. Gwynedd council said it had the lowest council tax collection rate in Wales in 2024-25 at 93% and that a review was "ongoing" and action was being taken to "strengthen our recovery".The transferring of some self-catering holiday lets from cheaper business rates to council tax may also have affected the shoppers in Bangor said many people were struggling to afford council tax from Pentir has moved in with her daughter, and admitted: "I wouldn't be able to pay it out of my little pension any more."Christine Lewis Roberts, from Anglesey, said: "I think it's too much really, but then everything is. "Bills are going up and that's it."But Gareth Parry said councils had to find the money to keep services running, adding: "Everybody says it's a bit high, but that's the cost of things these days -councils have got to function."Eleanor Price from Gwynedd said the two week rule was "not enough time", adding: "If people are in difficulties, they are going to continue to be in difficulties." Council tax arrears across Wales stood at £103m for the 12 months to the end of March, plus another £160m in overdue payments from previous years, bringing the total outstanding amount to £ tax is the main source of locally-raised income for local authorities, and it is charged on domestic property with the amount charged depending on the value of the property, which was last assessed in government plans for a revaluation, which could see lower bills for some and higher ones for others, were delayed until 2028. Council tax is often criticised for being "regressive", or placing a disproportionate burden on poorer is a council tax reduction scheme for poorer people, which supported 258,685 households in 2023-24. Some properties are exempt, for example those occupied solely by students, while others - such as second homes - are sometimes charged a households qualify for a discount, such as the single person discount which reduces the bill by a quarter if a property is occupied by someone living alone. The Welsh government is currently running a consultation on proposals to soften the rules around include extending the period when a missed monthly payment triggers a liability to pay the entire year's bill from two weeks to two months, and requiring councils to communicate more comprehensively with residents over payment reminders and final Minister Mark Drakeford said the current rules are "too aggressive" and the government wanted to "tackle what is a fundamentally unfair tax".He said: "We want to change the rule book to give councils more opportunity to get alongside people who find themselves in trouble to prevent that from getting worse." The Welsh government is also funding a small pilot scheme covering Merthyr Tydfil, Blaenau Gwent and Newport, which offers interest free loans to eligible residents so that they can clear their council tax Plaid Cymru said in a statement: "Whilst interest free loans are better than prosecution, the truth is that it is ultimately only a sticking plaster solution within a system that disproportionately impacts people living on the breadline."Without fundamental reform of council tax - something which Plaid Cymru has long argued for and that was due to happen until Labour pulled the plug on reform - this unfairness will persist." What to do if you can't pay council tax Debt charities warn that council tax is a "priority debt", so do not ignore your council if you are struggling to pay You may be able to arrange a repayment plan involving smaller amountsSeek free confidential help from a debt charity such as Citizens Advice Ask your council if you are eligible for support from the Council Tax Reduction SchemeCheck if you qualify for a discount on your property The Welsh Conservatives criticised Labour's "failure to hold back rapidly rising council taxes that working people are struggling to pay"."The Welsh Conservatives will keep council tax low by introducing local referendums for councils wishing to raise the tax by over 5 percent, so that residents have the final say," a spokesperson said. The Welsh Liberal Democrats said: "Council tax is one of the most outdated and unfair taxes in the UK today. "Too many families have gone into debt because of the Welsh government's delays in changing the system."Reform UK said: "The rising council tax arrears aren't surprising when you consider how councils waste money and resist meaningful reform."It's time to slash council tax, cut the waste, and put control back into the hands of the people who earn the money."

FUW give evidence to Westminster's Welsh Affairs Committee
FUW give evidence to Westminster's Welsh Affairs Committee

North Wales Chronicle

time15-06-2025

  • Business
  • North Wales Chronicle

FUW give evidence to Westminster's Welsh Affairs Committee

Last week the Farmers' Union of Wales welcomed the opportunity to present evidence to Westminster's Welsh Affairs Committee inquiry into the challenges and opportunities facing farming in Wales in 2025. The FUW was represented by our Head of Policy, Gareth Parry, who was questioned by MPs on a number of the ongoing challenges facing Welsh agriculture; including the UK's withdrawal from the European Union, the changes to agricultural and business property relief and how changes to the UK Government's funding for Welsh agriculture will impact the sustainability of the sector. As part of the session, the FUW highlighted the impact the UK's departure from the EU has had due to the loss of the intermediate-term stability provided by the EU's seven year Multiannual Financial Framework. The lack of such replacement financial frameworks has allowed the UK Government to apply the Barnett Formula to any future adjustments to Welsh agricultural funding, meaning that Wales will receive subsequent uplifts based on a historical share of the UK population as opposed to rural needs. Beyond the uncertainty regarding future farm funding, the FUW also highlighted how successive UK governments' appetite to sign trade agreements with other countries has undermined domestic food production. These agreements threaten to pull the rug from beneath Welsh farmers by reforming agricultural policies and replacing domestic food production with imports, with little consideration of the economic viability of Welsh farming businesses. Several questions during the session focused on the proposed inheritance tax reforms, with Mr Parry relaying the latest figures from Family Business UK and CBI Economics on the potential impacts for the UK economy. In summary, the report suggests that the reduction in business activity will lead to a loss in Gross Value Added (GVA) of £14.8 billion over the next five years. These latest figures again demonstrate HM Treasury's failure to consider the wider economic and social impacts of the proposed changes, and far-reaching implications on Welsh family farms and the economy. Frustratingly, it's been clear since the Budget announcement that HM Treasury Officials have had no intention of even acknowledging our concerns. They have slammed the door on the industry and appear to have thrown away the key. It remains the case that the FUW are not calling for the policy to be scrapped, however we continue to seek an opportunity to design a policy with HM Treasury that works for genuine family farms whilst closing the loopholes that currently exist.

FUW give evidence to Westminster's Welsh Affairs Committee
FUW give evidence to Westminster's Welsh Affairs Committee

Rhyl Journal

time15-06-2025

  • Business
  • Rhyl Journal

FUW give evidence to Westminster's Welsh Affairs Committee

Last week the Farmers' Union of Wales welcomed the opportunity to present evidence to Westminster's Welsh Affairs Committee inquiry into the challenges and opportunities facing farming in Wales in 2025. The FUW was represented by our Head of Policy, Gareth Parry, who was questioned by MPs on a number of the ongoing challenges facing Welsh agriculture; including the UK's withdrawal from the European Union, the changes to agricultural and business property relief and how changes to the UK Government's funding for Welsh agriculture will impact the sustainability of the sector. As part of the session, the FUW highlighted the impact the UK's departure from the EU has had due to the loss of the intermediate-term stability provided by the EU's seven year Multiannual Financial Framework. The lack of such replacement financial frameworks has allowed the UK Government to apply the Barnett Formula to any future adjustments to Welsh agricultural funding, meaning that Wales will receive subsequent uplifts based on a historical share of the UK population as opposed to rural needs. Beyond the uncertainty regarding future farm funding, the FUW also highlighted how successive UK governments' appetite to sign trade agreements with other countries has undermined domestic food production. These agreements threaten to pull the rug from beneath Welsh farmers by reforming agricultural policies and replacing domestic food production with imports, with little consideration of the economic viability of Welsh farming businesses. Several questions during the session focused on the proposed inheritance tax reforms, with Mr Parry relaying the latest figures from Family Business UK and CBI Economics on the potential impacts for the UK economy. In summary, the report suggests that the reduction in business activity will lead to a loss in Gross Value Added (GVA) of £14.8 billion over the next five years. These latest figures again demonstrate HM Treasury's failure to consider the wider economic and social impacts of the proposed changes, and far-reaching implications on Welsh family farms and the economy. Frustratingly, it's been clear since the Budget announcement that HM Treasury Officials have had no intention of even acknowledging our concerns. They have slammed the door on the industry and appear to have thrown away the key. It remains the case that the FUW are not calling for the policy to be scrapped, however we continue to seek an opportunity to design a policy with HM Treasury that works for genuine family farms whilst closing the loopholes that currently exist.

FUW give evidence to Westminster's Welsh Affairs Committee
FUW give evidence to Westminster's Welsh Affairs Committee

Leader Live

time13-06-2025

  • Business
  • Leader Live

FUW give evidence to Westminster's Welsh Affairs Committee

Last week the Farmers' Union of Wales welcomed the opportunity to present evidence to Westminster's Welsh Affairs Committee inquiry into the challenges and opportunities facing farming in Wales in 2025. The FUW was represented by our Head of Policy, Gareth Parry, who was questioned by MPs on a number of the ongoing challenges facing Welsh agriculture; including the UK's withdrawal from the European Union, the changes to agricultural and business property relief and how changes to the UK Government's funding for Welsh agriculture will impact the sustainability of the sector. As part of the session, the FUW highlighted the impact the UK's departure from the EU has had due to the loss of the intermediate-term stability provided by the EU's seven year Multiannual Financial Framework. The lack of such replacement financial frameworks has allowed the UK Government to apply the Barnett Formula to any future adjustments to Welsh agricultural funding, meaning that Wales will receive subsequent uplifts based on a historical share of the UK population as opposed to rural needs. Beyond the uncertainty regarding future farm funding, the FUW also highlighted how successive UK governments' appetite to sign trade agreements with other countries has undermined domestic food production. These agreements threaten to pull the rug from beneath Welsh farmers by reforming agricultural policies and replacing domestic food production with imports, with little consideration of the economic viability of Welsh farming businesses. Several questions during the session focused on the proposed inheritance tax reforms, with Mr Parry relaying the latest figures from Family Business UK and CBI Economics on the potential impacts for the UK economy. In summary, the report suggests that the reduction in business activity will lead to a loss in Gross Value Added (GVA) of £14.8 billion over the next five years. These latest figures again demonstrate HM Treasury's failure to consider the wider economic and social impacts of the proposed changes, and far-reaching implications on Welsh family farms and the economy. Frustratingly, it's been clear since the Budget announcement that HM Treasury Officials have had no intention of even acknowledging our concerns. They have slammed the door on the industry and appear to have thrown away the key. It remains the case that the FUW are not calling for the policy to be scrapped, however we continue to seek an opportunity to design a policy with HM Treasury that works for genuine family farms whilst closing the loopholes that currently exist.

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