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.

Prof Drakeford has long supported a land value tax (LVT), arguing those who have the privilege of ownership should pay something back for that privilege.

As the name suggests, land value tax (LVT) 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 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 10 June, 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”.