Source · Select Committees · Housing, Communities and Local Government Committee
Recommendation 21
21
Rejected
Reform council tax through property revaluation, new bands, and wider long-term options.
Recommendation
We stand by our previous conclusions, and those of our predecessor Committee: the council tax regime is in desperate need of reform and updating. We recommend that the Government reform council tax by undertaking a revaluation of properties and introducing additional council tax bands, and in the longer-term, consider options for wider reform. (Paragraph 102) Council Tax Collection 39
Government Response Summary
The government rejects the recommendation for council tax reform, specifically refusing property revaluation and additional bands due to cost and potential impact on low-income households, deferring wider reform considerations to the next Parliament.
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.