Labour seeks to overhaul council tax as it targets ‘property wealth’

Sir Keir Starmer’s Labour party has refused to rule out using satellites to spy on homeowners and hike tax as has reportedly been the case in Wales.

Families who live in areas with good schools or lower crime rates are among those who will be hit with higher council tax bills, under plans being drawn up by the Senedd, and The Telegraph reports that Labour in England could follow suit.

The Labour-run Welsh Government says it will introduce higher council tax bands and higher tax band rates to address “property wealth” and “rebalance” the existing system.

Sir Keir Starmer has insisted that a Labour government will not raise taxes. But, acciording to The Telegraph, he is using the Welsh government as a “blueprint” for “what Labour can do across the UK”.

A wider UK council tax revaluation, which has previously been advocated by Jim McMahon, now Sir Keir’s shadow local government minister, would be likely to result in tax increases for households across the country.

Asked if the party would revaluate council tax, a Labour spokesman said that it has “no plans” to do so, but declined to categorically rule out such a move.

According to The Telegraph, the Valuation Office is currently gathering data that will enable officials to build an “automated valuation model” to prepare up-to-date values for all of the 1.5 million homes in Wales.

As part of this model, they are using “aerial and street view photography” in order to verify the size of houses and gardens.

They are also looking at Energy Performance Certificates (EPCs), meaning the more energy efficient homes – for example, those with double glazing – could potentially be charged higher taxes.

Similar plans were postponed by Tony Blair in 2005 after a 2003 revaluation in Wales led to tax rises for many households. The backlash prompted Labour to pledge in its 2010 manifesto not to hold a council tax revaluation in the next parliament.

David Cameron dropped the plan altogether after coming to power in 2010, following estimates that it would have left more than seven million families in England paying an extra £320 a year, or more.

Currently, council tax bands in England are based on the price for which each property would have sold in 1991.

A Welsh Government spokesman said: “We are listening to communities while considering options for reform of council tax in Wales.

“We are acutely aware of the financial pressures people are facing due to the cost-of-living crisis and the UK Government’s mismanagement of the economy, and this will be at the forefront of our considerations.”

Darren Jones, Labour’s shadow chief secretary to the treasury, said: “The next Labour government will get council finances back on an even keel with multi-year financial settlements so they can plan for the long term and make savings.

“All our decisions are taken to get more money back into the pockets of working people. Only Labour can provide the chance our country needs.”

 

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6 Comments

  1. LVW4

    The start of the Labour wealth tax programme. BTL will be in their cross-hairs.

    If the Welsh Labour ‘government’ is already working on this, Welsh voters know what they must do to stop it!

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  2. KC54

    So the more fuel efficient homes will be charged a higher Council Tax.

    I am sure Labour will struggle to hit their Green targets by doing that. What is the point?

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  3. AcornsRNuts

    MPs will, no doubt, be able to claim any increases as expenses.

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  4. The_Maluka

    So my house which is near a primary school is taxed at a higher rate than similar houses a couple of miles away? I am near a pub and the village shop, is that considered another reason to increase my tax? My insulated and double glazed home which cost me tens of thousands to upgrade is to be taxed at a higher rate, presumably to compensate for the money I save on heating, similarly the PV saves money so I can pay a little more on council tax.

    I seem to remember that a few years ago houses with a low EPC were to be penalised, just the opposite of what is now proposed.

    All the above is just excuses for increasing taxation, It will not stop until the government takes everything as it has done with landlords. The English political world has gone mad.

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    1. LVW4

      Landlords are told to improve the energy efficiency of the properties they let, and may be penalised in the future if their EPCs are too low.

      The problem with this is landlords will invest in improving EPCs [many already have], but it’s the tenants who will suffer because they pay the council tax.

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  5. Mark

    Before jumping to any conclusions, think back to GCSE History. Always review the source.

    ”…The Telegraph reports…”

    “….acciording to The Telegraph….

    No first-hand source. Just some creative spin from a Conservative-leaning broadsheet.

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