Source · Select Committees · Housing, Communities and Local Government Committee
Recommendation 43
43
Rejected
Devolve power to councils to revalue properties, set bands, and apply council tax discounts.
Recommendation
A significant and considered reform of council tax will take several years to take effect. Until it does, the Government should devolve power and responsibility for setting council tax to councils. This should include the power for individual councils to revalue properties in their area, define property bands, and set the rates for those bands. Individual councils should also be given the power to apply or remove discounts and premiums (such as the single person discount), and to determine the criteria for how they are applied. Councils using these powers will have a responsibility to justify their use to their electorates, who will hold them accountable at the ballot box. The Government should retain the power to override locally set council tax rates only in exceptional cases of councils showing financial mismanagement or a lack of social responsibility to residents. (Recommendation, Paragraph 159)
Government Response Summary
The government explicitly rejects devolving full responsibility for setting council tax to individual councils at this time, stating that council tax is already localized with existing discretionary powers for local authorities.
Government Response
Rejected
HM Government
Rejected
The Government does not accept the recommendation to devolve full responsibility for setting council tax to individual councils at this time. Council tax is already a localised tax – local authorities are responsible for setting tax levels, administering and collecting the tax, and have discretionary powers over discounts, premiums and support for working age people.