Valencian government approves tax cuts and housing access reform amid central government alarm over 'hidden national priority'

What the law contains

On June 16 the Valencian government approved the draft Law on Fiscal, Administrative-Management and Organisational Measures (the 'ley de acompañamiento' to the 2026 budget). The text lowers the autonomous IRPF rate across almost all brackets, targeting middle and low incomes. The regional tax office, José Antonio Rovira, said it would save 2.7 million taxpayers a combined €160 million, with the biggest relief falling on earners between €32,000 and €72,000, 'the great forgotten, which are the middle classes.'

For a household earning €20,000–€30,000 the saving could reach nearly €600, rising to almost €650 for the €30,000–€40,000 band. Rovira insisted the cuts are 'perfectly compatible with improving public services' and promised further reductions in the 2027 budget.

Tighter oversight of protected housing

The law rewrites the rules for allocating VPP (viviendas de protección pública). Promoters must now issue a transparent selection plan, open a minimum 30‑day application window, publish each project online and keep an electronic applicant register. A collegiate commission in the housing department will carry out a double review of every award, verifying income and wealth before authorising a sale or rental. Camarero called it 'a significant step forward because it strengthens administrative control over compliance with access requirements.'

'Arraigo' and the constitutional clash

A new optional criterion lets town halls weight 'continued territorial linkage', essentially local rootedness, when assigning VPP housing. The central government submitted objections, arguing the concept amounted to a 'hidden national priority' that 'poses a clear threat to the Spanish Constitution and its Article 14.' Isabel Rodríguez's ministry said it would 'supervise' the final wording to guard fundamental rights.

Camarero rejected any ideological framing. 'This is not an ideological innovation,' she said, 'it is a management mechanism used by administrations to grant aid and housing access.' She stressed that the measure had nothing to do with nationality and merely echoed demands from mayors who had ceded land to the Vive plan.

We pick up the gauntlet of residents and mayors who have long called for priority for people living in a municipality when allocating VPP, as some towns have already established in plot-cession agreements with the Generalitat.

Political backdrop

The bill comes three days after Vox announced a three-pillar pact with the Consell: 'national priority,' tax reduction, and housing access. The budget itself, totalling €33,305 million (up 3.1 percent on 2025), was approved on May 29. Rovira expects to submit the law to Les Corts next week and hopes for final approval before the summer recess, perhaps by the July 21–22 plenary, though the calendar may have to be extended.

What happens next

The draft now needs mandatory reports from the Economic and Social Council and the Consell Jurídic Consultiu, after which the government will table it as a formal bill. The parliamentary groups will then have the chance to amend it, with the central government watching closely to ensure the final text does not breach constitutional equality safeguards.