Council Tax bands

[titbumwillypoo]

Council tax bands were set in 1991 and do not reflect the wealth distribution of the country today it's about time they were updated. It's ridiculous that a band D home in Islington where the average house price is £685000 is £1276.48 a year when a Band D house in Barnsley average price of £166000 is £2126.77.
Government should update the banding values, collect all the money and distribute it based on the actual demographics of the area which would be a fairer funding model. Some areas might be child heavy or pensioner heavy and it would allow councils to fulfil their statutory duties better if they had the funding in place.
Band A £0-£100000
Band B £100001-£200000
Band C £200001-£300000
Band D £300001-£400000
Band E £400001-£500000
Band F £500001-£600000
Band G £600001-£700000
Band H £700001 upwards

It wouldn’t go to the council though. Central government would distribute based on population and other requirements like the schools funding formula.

Why should areas with lots of universities have high taxes on everyone else to pay for the students?

@Winteriscominginfast everyone’s not liking my suggestion but most people would actually pay less. Work it out for your own houses.

@Rhayader If you think areas with large student numbers have the highest band D council tax
you need to educate yourself
it is ABSOLUTELY not the case

Every Band D and Council tax base is a matter of public record

The UK is already the most centralised economy in the OECD
should we put even more of our funding at the whim of Whitehall ?

So, you want to abandon local taxation altogether? That will be a big blow to local democracy.

SummerSnowstorm · Today 20:57

Why should someone with a more expensive house pay more for the same services though? We don't charge anything else like groceries or cost per energy unit based on perceived assets or income.
But you do pay more in expensive areas, that's why a pint in London is what £8 now whereas it's £3 in Barnsley.

What are your suggestions for raising more revenue?

Property wealth is the only way to raise significant revenue outside of income tax, NI and VAT which have already been ruled out — other than perhaps tariffs?

It’s a tax on an asset that is impossible to hide and impossible to move offshore and relatively easy to value.

This is very similar to a genuine proposal from senior MPs in the party and may actually be on the cards.

I’m low income. I can’t get any financial support from anywhere as I have savings. I have done without for decades in order to save.

Why should I (as a single mum, with 1 incoming wage) in a cheap, small house pay the same as someone in a big expensive house?

Why do people with higher salaries pay higher percentages of tax? Why do people with higher bands now pay higher amounts?

It’s the “broadest shoulders” argument but this time it’s going after unearned wealth that is largely accumulated completely tax free instead of just increasing income tax again which hurts younger generations.

@Rhayader
I have explained in words of one syllable how council tax works
and could be simply improved
please reread

Land taxes are a central government tax (of which I happen to approve)
Council taxes are a LOCAL tax and should stay that way

I could get behind more bands but I think Labour have already ruled that out?

The current system massively favours central London. They hardly need to charge a thing because people who live out of area pay into businesses who then pay business rates.

@DadJoke the current system is pretty unfair. The amount of care you receive for free massively depends on the wealth of the area you live in. Do I think local government should retain control of budgets? Sure. But the richest areas should be subsidising the poorer ones, especially when it’s only rich because of business rates as explained above (ie Westminster council).

I really think this is a great opportunity to get rid of stamp duty which is just a ridiculous tax… My aim would be to kill two birds with one stone. Why should frequent movers be penalised?

A central proportional land tax with more bands on council tax would have a very similar effect to the 0.5% proposal tbh - unless your land tax is extremely low? What would you set it as?

A lot of London schools are closing because there are not enough children to go to them. Families are already struggling to live in London and your system would make it even more expensive. You can always pay more if you want to. We have a voluntary scheme in our area. You could set one up in yours.

I think a per person charge would be fairer as well, but people keep bleating on about the poll tax as though nothing’s moved on in 30+ years!

Failing that, I’d like to see Band D in each area equalling the average house price in that area and adjust up and down from there. There are some very odd and unfair anomalies which the councils seem to like ignoring.

@Rhayader
"The current system massively favours central London. They hardly need to charge a thing because people who live out of area pay into businesses who then pay business rates."
Piffle.
Council tax and business rates are ENTIRELY unconnected.
Read more about reality

How exactly would adding to the top council tax bands have ANY effect on poorer families

School rolls are falling in London due to reduced birth rates not council tax of £800 a year

The poll tax was grossly unfair at the time and remains so now
if you cannot see why
and how a "per person" tax can be gamed, read more

I understand the background thank you, I just disagree with you that it’s unfair,

What are you on about? Council tax and business rates are the two largest sources of council funding.

If one is high you don’t need the other to be as high to have the same relative amount of money. Thats why Westminster has the lowest council tax rate in the country. Just £1,946.32 for band H.

@Rhayader
Councils do not keep business rates
please educate yourself

Westminster has low council tax because it is tiny, rich and has no secondary services

This is so true! Any fool can look on Rightmove and see exactly what price properties sell for.

And yet apparently the valuation office is completely unable to work it out.

Please educate yourself.

Since 2013 they have kept 50% of rates under the business rates retention arrangements introduced from 1 April 2013,

What are the business rates retained by Breckland Borough Council ?

Not a clue. I’m not going to go through some random councils accounts to find that out.

The fact is that councils do retain a share of business rates and that does impact their finances - especially those with large retail, business and entertainment districts.

If you do not know about Breckland you do not know Council Tax stats
enjoy

Okay I looked it up. They get 8% of their funding from retained business rates and 14% from council tax.

I’m really unsure what your point is here.

They have the highest band D in the country
look up why

Just tell me… Why is this a mystery scavenger hunt?

Random little examples of inefficiencies in the system sort of prove that the whole system should be overhauled. Not just “more bands”.