Reform Wales pushes local referendums on council tax hikes
The proposal, lodged on 14 October, would give residents the right to approve or reject such rises, aligning Wales with the referendum system already operating in England.
Reform Wales has tabled a motion in the Senedd calling for local referendums on any council tax increase that exceeds 4.99%.
The proposal, lodged on 14 October, would give residents the right to approve or reject such rises, aligning Wales with the referendum system already operating in England.
Under the motion, a council wishing to raise its tax bill above the threshold would be required to hold a local poll before the increase could take effect.
Supporters argue the measure would increase transparency and give voters a direct say in how much they are asked to contribute to local services.
Reform Wales’ Shadow Cabinet Minister for Finance, Cai Parry‑Jones MS, said: “With council tax bills continuing to rise while services and high streets decline, residents deserve a greater say over how much they are expected to pay, rather than having their concerns ignored.”
He added that the motion “calls for greater accountability from local authorities and to give residents a direct say when councils propose increases above 4.99%, this will finally put Welsh taxpayers on equal footing with their English counterparts.”
Parry‑Jones continued, “Plaid Cymru talk about a new deal for Wales, but what the people of Wales really need is a fair deal from all layers of government within Wales.” If councils want to take more money from hard‑pressed households, they should have to justify their decisions directly to the people who pay.”
The Welsh Government has not yet responded to the motion, but officials have previously highlighted the fiscal pressures facing local authorities, including rising service costs and limited central funding.
Local councils in Wales have raised council tax by an average of 3.2% over the past year, according to recent data from the Welsh Local Government Association.
Some authorities argue that modest increases are essential to maintain services such as waste collection, social care and road maintenance.
Critics of the referendum proposal warn that frequent local polls could delay essential funding and increase administrative costs for councils.
They also point out that the 4.99% threshold may be too low for some areas facing higher inflationary pressures.
In England, the Localism Act 2011 introduced a similar requirement for local referendums on council tax rises above 5%.
Since its introduction, English councils have held a series of polls, with mixed outcomes; some proposals have been rejected, while others have passed after additional public consultation.
Reform Wales argues that adopting the same framework would empower Welsh voters and promote a more balanced relationship between taxpayers and local authorities.
The motion also seeks to embed the referendum requirement in Welsh legislation, rather than leaving it to discretionary local decisions.
Opposition parties in the Senedd have expressed varying levels of support, with some questioning whether the measure addresses the root causes of rising council tax.
Stakeholders such as the Wales Chamber of Commerce have called for a broader discussion on funding reforms, suggesting that a referendum alone may not resolve fiscal challenges.
The debate is expected to continue in the coming weeks as the Senedd schedules further scrutiny of the motion.
Should the proposal gain majority support, it would mark a significant shift in how council tax policy is shaped across Wales.