Source · Select Committees · Housing, Communities and Local Government Committee
Recommendation 4
4
Rejected
Paragraph: 41
Urgently reform council tax by revaluing properties and introducing additional bands.
Recommendation
We repeat the recommendation made in our July 2021 report, Local Authority Financial Sustainability and the Section 114 Regime, and our November 2023 report, Council Tax Collection: namely, that: the Government must urgently reform council tax by undertaking a revaluation of properties and introducing additional council tax bands, and should consider options for wider reform of council tax.
Government Response Summary
The government rejects the recommendation for urgent council tax reform, specifically revaluation and additional bands, citing cost and potential impact on low-income households, deferring wider reform discussions to the next Parliament.
Paragraph Reference:
41
Government Response
Rejected
HM Government
Rejected
5. The Government remains committed to improving the local government finance landscape in the next Parliament. The starting point for this work should be consideration of the purpose and functions of local government. The government confirmed in the Policy Statement of 2022 that in response to calls from the sector the government is prioritising stability in this Parliament and will work with local government and the wider sector on the new challenges and opportunities they face in the next Parliament. 6. The Government has no plans to conduct a revaluation of council tax bands. A revaluation would be expensive to undertake and it would particularly risk penalising those on a lower income, including pensioners, who have seen their homes appreciate in value, and might face a substantial increase in tax without having the income to pay it. This was reaffirmed in our response to the committee’s inquiry on council tax, our formal response to which was published on 1 February.