Source · Select Committees · Housing, Communities and Local Government Committee
Recommendation 19
19
Rejected
Paragraph: 100
Outdated council tax collection system increasingly drives more residents into arrears.
Conclusion
The entire system for collecting council tax is outdated and not meeting its desired purpose. This has become increasingly problematic because councils are becoming ever more reliant on council tax for their budgets. In 2015/16, council tax made up 49.1% of core spending power. It now makes up 56.9% of core spending power in 2023/24. Councils are having to put up their council tax to provide much needed public services, which makes more and more residents vulnerable to falling into arrears.
Government Response Summary
The government rejects the implied need for a revaluation of council tax bands, citing cost and potential negative impacts on lower-income households. It states a commitment to improving the local government finance landscape in the next Parliament, prioritizing stability in the current one.
Paragraph Reference:
100
Government Response
Rejected
HM Government
Rejected
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. It may also increase council tax for households where home improvements have been made since they moved in. The Government remains committed to improving the local government finance landscape in the next Parliament. The Government confirmed in the Policy Statement published ahead of the provisional Local Government Finance Settlement that in response to calls for stability 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.