The Welsh Government is raising the threshold on Land Transaction Tax

People purchasing homes worth up to £225,000 will not have to pay tax, the Welsh Government has announced.

Finance and local government minister Rebecca Evans raised the threshold on the Welsh version of stamp duty, Land Transaction Tax. It comes following last week's UK 'mini-budget'.

From October 10 the threshold for the tax will rise from £180,000 but there will also be a small increase in the rate of the tax for homes that cost more than £345,000. The minister said two thirds of homebuyers would not pay tax on their purchase.

In her statement, Ms Evans condemned the financial changes announced last week by Chancellor of the Exchequer Kwasi Kwarteng. She called it "one of the most consequential, divisive and regressive sets of fiscal changes ever set out by any UK Government".

"The package was deeply unfair and morally indefensible," she said. "It completely failed to target urgent and meaningful support to vulnerable households impacted by the cost-of-living crisis, and left public services, currently stretched beyond any recent experience by inflation, without the critical additional funding that they need this winter.

"Through his statement, the Chancellor ignored all of this and instead prioritised tax cuts for the rich, unlimited bonuses for bankers, and protected the profits of big energy companies. It will have significant economic and social consequences and will cost individuals and families in Wales dearly."

Ms Evans said the UK Government should have offered people more support through welfare benefits and housing - funded through a windfall tax on energy firms. "Instead, the Chancellor has chosen to drastically increase public borrowing, leaving lower income households to shoulder the impact for years to come," she said.

"The statement failed to set out a comprehensive vision for investment to boost economic growth, improve our energy security for the future and address the climate emergency."

She told the Senedd the Welsh Government was opposed to the abolition of the 45% tax rate on annual incomes above £150,000 and had no warning of the change. "At a time when it is those on the lower end of the pay scale that are suffering the most, this is a shocking policy to introduce."

The Welsh Conservatives said that although the tax cut was welcome, it did not go far enough.

Finance spokesman Peter Fox said: "Last week the UK Conservative Government took bold and decisive action to put aspiration, opportunity and growth at the heart of the economy. House prices in Wales have now hit £240,000, yet the Labour Government in Cardiff Bay is firmly slamming the door in the faces of first-time buyers by refusing to provide specific support for them."

Plaid Cymru's finance spokesman Llyr Gruffydd called for a "real fundamental overhaul of the fiscal powers that are devolved to Wales. He said: "The current fiscal framework isn't fit for purpose and it really exposes how weak Wales's hand is when it comes to protecting the people of Wales from this kind of Tory onslaught on our most vulnerable and our poorest citizens."