Source · Select Committees · Housing, Communities and Local Government Committee
Recommendation 5
5
Rejected
Paragraph: 42
Raise council tax referendum threshold in line with inflation; consider its long-term removal.
Recommendation
Furthermore, in the short-term, the Government must raise the referendum threshold for council tax at least in line with a relevant measure of inflation. In the longer- term we recommend that the Government considers removing the threshold entirely.
Government Response Summary
The government rejects the recommendation, stating its manifesto commitment is to protect local taxpayers from excessive council tax increases and defending the existing referendum threshold system as a balance between local authority flexibility and protecting residents. It does not agree to raise or remove the threshold.
Paragraph Reference:
42
Government Response
Rejected
HM Government
Rejected
7. The Government’s manifesto commits to continuing to protect local taxpayers from excessive council tax increases. Referendum principles are thresholds, not targets, and strike a balance between allowing local authorities to make tough decisions to address pressures on services while protecting local residents from excessive increases. Every decision to raise council tax is taken locally, and councils can raise council tax above the referendum threshold, provided they have the backing of their residents through a referendum. 8. The Government believes that any increases above the current referendum threshold, where the Government has provided additional flexibility, should only be considered in the most serious of circumstances.