Politics
Plans to replace ‘unfair’ council tax still on the cards
WALES’ finance secretary Mark Drakeford confirmed plans for a land value tax remain on the table as a potential long-term replacement for council tax and business rates.
The former First Minister said the Welsh Government continues to explore the feasibility of a land value tax as used in countries such as Denmark and Singapore.
Professor Drakeford has long supported a land value tax (LVT), arguing those who have the privilege of ownership should pay something back for that privilege.
While council tax is regressive because it imposes a lower burden on the rich than the poor, LVT is progressive as it flips that proposition around.
As the name suggests, land value tax (LVT), which has been described by some economists as the “perfect tax”, is levied on the value of the land rather than the property itself.
Proponents argue LVT is easier to collect, more efficient and difficult to avoid, while discouraging speculation and encouraging people to bring idle land back into use.
Prof Drakeford told the Senedd: “I am anxious to see this discussion move beyond the theoretical and into the realms of the practically possible.”
He explained that the Welsh Government has invited tenders to test approaches to valuing land, with submissions for every aspect of the work despite some initial scepticism.
The finance secretary, who will stand down at the 2026 election, said: “I want to use the coming months to test the boundaries of what might be possible in the next Senedd term.
“Let’s open the door to more radical, fundamental and progressive reform in the future.”
In a statement on local taxes on June 10, Prof Drakeford highlighted ongoing consultations on council tax discounts and enforcement as well as business rates reform.
He said: “The current system is unfairly weighted against those who experience difficulty in paying. I want to shift the focus from harmful escalation towards supportive prevention.”
Prof Drakeford stated ministers will introduce a new council tax appeals process by April 2026 that will be “easier to navigate and provide a better, modern system for taxpayers”.
Peter Fox, who led Monmouthshire Council for a decade, agreed that council tax is regressive by nature “and that it will never really become a fair local tax”.

The Tory welcomed confirmation that the “crucial” 25% single person discount will remain but warned of the impact of continual increases in tax bills – including a 7.2% average this year.
Mr Fox accused the Welsh Government of increasing tax on families “by stealth” through underfunding councils which, in turn, pass on the shortfall to people. He called for reform of the “outdated and flawed” local government funding formula.
Prof Drakeford replied: “Almost every local authority in Wales will agree that the formula needs revision – nobody can agree on how that should be done. The 22 local authorities each believe that the formula uniquely disadvantages them.”
Heledd Fychan, Plaid Cymru’s shadow finance secretary, agreed with the need for more radical and progressive change in the longer term.

Ms Fychan urged the Welsh Government to rethink proposals to stop considering a hospital as an individual’s long-term or permanent home for council tax purposes.
She said: “We know of examples where people have had to remain for a very long time in hospital. It’s not the patient’s fault. It doesn’t appear fair to me that they should be penalised.”
Business
Bid to convert office space into chocolate factory, salon and laundrette
A CALL for the retrospective conversion of office space previously connected to a Pembrokeshire car hire business to a chocolate factory, a beauty salon and a laundrette has been submitted to county planners
In an application to Pembrokeshire County Council, Mr M Williams, through agent Preseli Planning Ltd, sought retrospective permission for the subdivision of an office on land off Scotchwell Cottage, Cartlett, Haverfordwest into three units forming a chocolate manufacturing, a beauty salon, and a launderette, along with associated works.
A supporting statement said planning history at the site saw a 2018 application for the refurbishment of an existing office building and a change of use from oil depot offices to a hire car office and car/van storage yard, approved back in 2019.
For the chocolate manufacturing by ‘Pembrokeshire Chocolate company,’ as part of the latest scheme it said: “The operation comprises of manufacturing of handmade bespoke flavoured chocolate bars. Historically there was an element of counter sales but this has now ceased. The business sales comprise of online orders and the delivery of produce to local stockist. There are no counter sales from the premises.”
It said the beauty salon “offers treatments, nail services and hairdressing,” operating “on an appointment only basis, with the hairdresser element also offering a mobile service”. It said the third unit of the building functions as a commercial laundrette and ironing services known as ‘West Coast Laundry,’ which “predominantly provides services to holiday cottages, hotels and care homes”.
The statement added: “Beyond the unchanged access the site has parking provision for at least 12 vehicles and a turning area. The building now forms three units which employ two persons per unit. The 12 parking spaces, therefore, provide sufficient provision for staff.
“In terms of visiting members of the public the beauty salon operates on an appointment only basis and based on its small scale can only accommodate two customers at any one time. Therefore, ample parking provision exists to visitors.
“With regard to the chocolate manufacturing and commercial laundrette service these enterprises do not attract visitors but do attract the dropping off laundry and delivery of associated inputs. Drop off and collections associated with the laundry services tend to fall in line with holiday accommodation changeover days, for example Tuesday drop off and collections on the Thursday.
“With regard to the chocolate manufacturing ingredients are delivered by couriers and movements associated with this is also estimated at 10 vehicular movements per week.”
The application will be considered by county planners at a later date.
Politics
Ceredigion council tax expected to rise by 4.7 per cent
A BETTER financial settlement for Ceredigion from the Welsh Government along with a fresh grant is expected to see council tax bills in the county rising by less than five per cent this year, far below previous fears of a rise as high as nearly nine.
Last year, for the 2025-’26 budget, Ceredigion saw a council tax rise of 9.3 per cent.
While council tax makes up a proportion of the council’s annual revenue, a crucial area of funding is the Aggregate External Finance (AEF) rate from Welsh Government.
Ceredigion was to receive a 2.3 per cent increase on its settlement, some £3,388,000 for a total of £150,670,000, placing it at joint 13th of the 22 local authorities in Wales.
Following a later Welsh Government and Plaid Cymru agreement additional funding for local government was secured, giving Ceredigion additional funding.
Back in November, before the increased settlement was announced, Ceredigion Leader Cllr Bryan Davies said that early estimates indicated that an 8.9 per cent increase in council tax would be necessary, but an improved position of 6.9 per cent had been indicated as a result of a further modelling of service cost pressures and operational savings.
Following the improved settlement, members at the January meeting of Cabinet heard from Cabinet Member for Finance and Procurement Services Cllr Gareth Davies a recommendation for a 4.75 per cent council tax increase as part of a draft budget requirement of £221.493m was being mooted.
That position has improved again, following financial support towards the Mid and West Wales Fire Service Levy, members of the February 3 meeting of the council’s corporate resources overview and scrutiny committee heard, the funding now dropping the expected council tax increase to 4.7 per cent, equivalent to an extra £7.39 per month for the average Band D property for the next financial year.
Members of the committee agreed to note the 4.7 per cent figure, with the final council tax recommendation being considered by Cabinet on February 10; the final decision on the budget being made by full council on March 2.
international news
Mandelson quits Lords amid police probe over Epstein links
Peter Mandelson has announced he will retire from the House of Lords with immediate effect, as mounting political and legal pressure grows over claims he shared sensitive government information with convicted sex offender Jeffrey Epstein.
Parliamentary officials confirmed that Peter Mandelson formally notified the Clerk of the Parliaments of his decision, ending his membership of the upper chamber from Tuesday (Feb 4).
The move follows reports that the Metropolitan Police Service is reviewing allegations of possible misconduct in public office connected to emails said to have been forwarded to Epstein while Mandelson was business secretary during the 2008–09 financial crisis.
Downing Street has confirmed that material has been passed to police after an initial Cabinet Office review.
Government fury

Prime Minister Keir Starmer told cabinet colleagues Mandelson had “let his country down”, according to No 10, and officials are now drafting legislation that could strip him of his peerage entirely.


Removing a life peer is rare and would require an Act of Parliament.
If passed, Mandelson would lose the title “Lord” altogether — an extraordinary step that has only been considered in the most serious cases.
Senior ministers have described the alleged passing-on of market-sensitive government discussions as “disgraceful” and a “betrayal of trust”.
What police are examining
Misconduct in public office is a centuries-old common law offence that applies where someone in a position of public trust wilfully abuses that role. It carries a maximum sentence of life imprisonment.
Investigators will assess whether confidential information — particularly relating to government financial policy during the crash — was shared without justification and whether safeguards were breached.
At this stage, no charges have been brought.
Mandelson has previously apologised for maintaining contact with Epstein after the financier’s conviction, saying he regrets “ever having known him”, but he has disputed some of the latest claims and has not commented directly on the police review.
Political shockwaves
Opposition parties are pushing for further disclosure of documents relating to Mandelson’s vetting and his past roles.
Conservatives are expected to force a Commons vote demanding more information, while Liberal Democrats have called for a public inquiry.
Several MPs have also suggested Mandelson should be removed from the Privy Council.
The developments mark a dramatic fall for one of Labour’s most influential political figures of the past three decades, who only months ago was serving as the UK’s ambassador to Washington.
Now, with police examining evidence and legislation being prepared to remove his title, his public career appears effectively over.
More updates are expected as the investigation continues.
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