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Government Weighs Higher Council Tax for Costliest Homes Ahead of Budget

The move is being explored as a pre‑Budget revenue option to modernize a tax still based on 1991 valuations.

Overview

  • Reports say Chancellor Rachel Reeves is considering options that include doubling rates for Bands G and H or adding new higher bands, with no final decision before the 26 November Budget.
  • An Institute for Fiscal Studies estimate suggests doubling the top two bands could raise about £4.2 billion, and coverage cites more than one million homes in those bands as potentially affected.
  • Daily Mail analysis projects some Band H bills could exceed £10,000 a year in places like Rutland if rates were doubled, highlighting wide local variations in current charges.
  • Downing Street has declined to rule out changes, while critics including Kemi Badenoch and Nigel Farage warn the measures would hit pensioners and long‑time owners in high‑price areas.
  • Analyses note England’s council tax is based on 1991 values and a full revaluation is unlikely soon, with precedent from Wales’ 2003 addition of a higher band and concentrations of very high‑value homes in London and the South East.