Ellie Ames 26 January 2024

Call for council tax overhaul

Call for council tax overhaul image
Image: philip openshaw / Shutterstock.com

Work should begin now on the ‘long-overdue’ revaluation of all domestic properties in England to bolster local government finance, a think-tank has argued.

The council tax system should then be reformed in the long term, the Northern Powerhouse Partnership (NPP) said in its Spring Budget submission.

Revaluing properties would create a fairer council tax system, which reflects changes in the market since the last valuation took place in 1991, according to the NPP, a think-tank and advocacy group for the North of England.

Under the current system, a homeowner in Hartlepool living in a house worth £150,000 is paying more than £200 a year more in council tax than someone in Westminster in a property worth £8m, the partnership said.

It added that to make council tax ‘fully progressive’, three new council tax ‘super bands’ should be introduced for properties worth £2m and above, with revenue shared across the country to help less prosperous areas pay for key services like children’s social care.

The think-tank also urged the chancellor to extend and deepen devolution. It said new level 4 mayoralties should receive a single funding settlement, and metro mayors should have powers to retain full business rates and introduce tourism taxes.

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