US EditionRachel Reeves considers ‘supercharged’ council tax on expensive homes
Rachel Reeves plans to introduce higher council tax bands on expensive homes to raise several billion pounds and address financial shortfalls.
- With weeks to go until the Budget on November 26, Rachel Reeves, Chancellor of the Exchequer, is considering new higher council tax bands targeting owners of expensive homes to plug a hole in public finances worth tens of billions.
- Amid repeated warnings from economists, Rachel Reeves faces pressure to raise taxes or revise borrowing rules after the Office for Budgetary Responsibility downgraded productivity forecasts, reducing fiscal headroom.
- Meanwhile, across the UK, council tax bands A–H apply, with the highest band for properties valued above 320,000; George Osborne first floated extra bands, but Prime Minister David Cameron blocked them.
- Budget planners note that new council tax bands could raise several billion pounds, with proposals including relief for elderly and 'cash poor' homeowners to defer higher bills, aiding the Treasury.
- With the Budget on November 26 approaching, the Treasury signals possible income tax increases while Keir Starmer, Prime Minister, declines to rule out raising taxes on working people, intensifying pressure on Labour party MPs and internal pressures.
14 Articles
14 Articles
UK finance minister Reeves plans tax raid on owners of expensive homes, FT reports
British finance minister Rachel Reeves is planning a budget tax raid on the owners of expensive homes, with new, higher bands of council tax seen as the best way to raise several billion pounds for the cash-strapped exchequer, the Financial Times reported on Friday.
How Reeves could change council tax to boost Budget
Rachel Reeves is reportedly planning to introduce higher council tax bands for the owners of expensive homes at next month’s Budget in a bid to raise cash. The rate of council tax is currently charged on residential properties using a system ranked from band A as the lowest value properties, to band H as the highest. There are a variety of measures which Reeves could take to change the system to try and remedy her cash-strapped Treasury. Creatin…
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