Rise in Council Tax Sparks Fears of Growing Inequality in England's Housing Market
The government is set to introduce measures to reform council tax, with plans to either double rates on the most valuable properties or impose a "mansion tax" on those who own luxurious homes. The proposed changes have sparked concerns that they could lead to significant increases in council tax bills for many households, particularly in areas where property prices are high.
One of the proposals involves doubling council tax rates on band G and H properties - bands that cover the most expensive homes in England. This would result in an additional £3,800 and £4,560 per year for band G and H properties respectively, taking their total bills to £7,600 and £9,120.
However, critics argue that such a move would be regressive and unfairly punish middle-income households who are already struggling with the cost of living. "The idea of doubling council tax on band G and H homes is just another example of how out of touch politicians are with reality," said Stuart Hoddinott, associate director at the Institute for Government thinktank.
Meanwhile, a proposed "mansion tax" that would charge owners of properties over £1.4 million an extra levy has also raised concerns about its fairness and potential impact on London's affluent neighborhoods. Estate agents have warned that such a policy could lead to significant increases in council tax bills for homeowners in these areas, where property prices are already sky-high.
The current system of council tax is based on outdated valuations, with properties in high-end areas often being underrepresented in the top bands and those in more affordable areas overrepresented. This has led to accusations that the tax is a "turbocharger of inequality," with wealthier households avoiding paying their fair share.
"Properties in areas such as London are underrepresented in top bands, while those in areas such as the north-east are overrepresented," said the Institute for Fiscal Studies (IFS). "A revaluation is long overdue."
The government's plans to reform council tax come amid rising concerns about housing affordability and inequality. As one expert noted, "The idea of a 'mansion tax' could be seen as more akin to a wealth tax, but it would still have significant implications for homeowners in London and other affluent areas."
The government is set to introduce measures to reform council tax, with plans to either double rates on the most valuable properties or impose a "mansion tax" on those who own luxurious homes. The proposed changes have sparked concerns that they could lead to significant increases in council tax bills for many households, particularly in areas where property prices are high.
One of the proposals involves doubling council tax rates on band G and H properties - bands that cover the most expensive homes in England. This would result in an additional £3,800 and £4,560 per year for band G and H properties respectively, taking their total bills to £7,600 and £9,120.
However, critics argue that such a move would be regressive and unfairly punish middle-income households who are already struggling with the cost of living. "The idea of doubling council tax on band G and H homes is just another example of how out of touch politicians are with reality," said Stuart Hoddinott, associate director at the Institute for Government thinktank.
Meanwhile, a proposed "mansion tax" that would charge owners of properties over £1.4 million an extra levy has also raised concerns about its fairness and potential impact on London's affluent neighborhoods. Estate agents have warned that such a policy could lead to significant increases in council tax bills for homeowners in these areas, where property prices are already sky-high.
The current system of council tax is based on outdated valuations, with properties in high-end areas often being underrepresented in the top bands and those in more affordable areas overrepresented. This has led to accusations that the tax is a "turbocharger of inequality," with wealthier households avoiding paying their fair share.
"Properties in areas such as London are underrepresented in top bands, while those in areas such as the north-east are overrepresented," said the Institute for Fiscal Studies (IFS). "A revaluation is long overdue."
The government's plans to reform council tax come amid rising concerns about housing affordability and inequality. As one expert noted, "The idea of a 'mansion tax' could be seen as more akin to a wealth tax, but it would still have significant implications for homeowners in London and other affluent areas."