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Proposed council tax reforms will make the system fairer and more progressive, the Welsh Government’s minister for finance and local government has said.

The reforms, set to be introduced in 2025, would include changes to council tax banding to reflect more recent data, as well as a review into discounts and reductions.

More details about how the new system could look will likely be confirmed later this year, the Welsh Government has said.

It also said that while council tax will continue to fund services like schools and social care, the reforms would not be designed to raise more money than is currently raised.

Council tax reform is a commitment outlined in the Welsh Government’s Co-Operation Agreement with Plaid Cymru.

Speaking in the Senedd, minister Rebecca Evans described the current system as being “20 years out of date” and labelled it “regressive”.

She said: “It places a higher burden on households with lower wealth.

“With every year that we continue under the current arrangements comes more unfairness, carried by some of the poorest in society.

“The evidence and experts agree this is one of the most beneficial actions we can take to reduce wealth inequalities, that will be felt in the pockets of those most in need by the end of this government term.”

Plaid Cymru MS Cefin Campbell, who is a designated member as part of the Co-Operation Agreement, welcomed the proposals to reform “this outdated form of taxation to make it fairer”.

He said: “The current council tax system we have is nearly twenty years out of date, contributes to wealth inequalities and disproportionately impacts poorer areas of Wales.”