Written question WQ87835

Local authorities in Wales have flexibility to set their annual budgets and council tax levels, taking account of local needs and priorities and the sources of funding available to them. The annual local government settlement distributes the unhypothecated revenue funding provided to local authorities on the basis of standard spending assessments (SSAs). SSAs are calculated through a formula which uses a wide range of statistical measures that reflect the drivers of need to spend for each authority. The measures include indicators of rurality.

The council tax system incorporates a wide range of statutory exemptions and discounts which take account of factors such property characteristics, and the composition and circumstances of households. As part of our commitment to make council tax fairer, we are reviewing the range of discounts and exemptions to ensure that they remain fit for purpose and reflect current needs.

In addition, local authorities have discretionary powers to reduce council tax bills for particular properties or classes of properties in their areas. These discretionary powers allow local authorities to respond to particular local circumstances. It is a matter for individual local authorities to determine whether and how they use these powers to address local priorities.