Cardiff Conservative Councillors call on Welsh Government to rule out land value tax

Cardiff Conservative Councillors are calling on the Welsh Government to rule out replacing council tax and business rates with a land value tax (LVT), warning it could leave Cardiff residents and businesses paying more without getting any more in return.

A motion led by Councillor Jayne Cowan and seconded by Councillor Joel Williams will be debated at full Council on Thursday 21^st October 2026. It asks the Council to oppose an LVT and for the Leader to write to the Welsh Government asking it to rule one out.

An LVT would tax people on the value of the land under their home, not on their ability to pay. Because Cardiff has some of the highest land values in Wales, councillors warn that households and businesses in the city could be hit hardest. Pensioners, families and individuals could see bills rise simply because land values in their area have gone up, even if their income has not.

The Welsh Government’s own research has raised doubts. An evidence review published this year found that ‘robust evidence of broader or transformative effects is limited’, and its technical work found that the data needed for an LVT in Wales is not currently in place.

Setting up a new valuation system would also be very costly and create more uncertainty for residents and businesses. Yesterday, the Welsh Government also announced that the planned council tax revaluation will be deferred because of its cost and the impact on households.

The motion also asks the Cabinet to report on how an LVT would affect Cardiff households, pensioners and businesses before the Council responds to any Welsh Government consultation.

Councillor Jayne Cowan commented “People in Cardiff are already stretched, and many are being asked to pay more for much less. The last thing they need is a new tax based on the value of the land under their homes rather than what they can afford to pay.

“Cardiff has some of the highest land values in Wales, so our residents could be hit harder than anywhere else. A pensioner who has lived in the same house for forty years shouldn’t face a bigger bill just because land prices around them have gone up.

“The Welsh Government’s own research admits the evidence isn’t there and the data isn’t ready. Only yesterday it put off the council tax revaluation because of the cost to households. It should now be clear and rule out a land value tax altogether.”

Councillor Joel Williams said “This would be a costly and complicated change, with no guarantee that anyone in Cardiff would get better services for it. Residents and businesses need certainty, not years of upheaval over how their bills are worked out.

“Before anything goes further, we need to know exactly what this would mean for Cardiff families, pensioners and local businesses. That’s why we are asking for a full report on the impact on the city, and why we are asking the Welsh Government to rule it out now.”