Chancellor Rachel Reeves is poised to announce a significant council tax overhaul in the upcoming Autumn Budget, a move set to impact hundreds of thousands of middle-class households across England.
The Core Proposal: A 'Mansion Tax' by Another Name
The central measure involves a revaluation of properties in Bands F, G, and H for council tax. This initiative, which has been dubbed a £600 million 'mansion tax' by critics, could see one in ten homes in England subjected to a new financial levy.
The Treasury plans to revalue approximately 2.4 million properties to facilitate the new charge. The consequence for the majority of the more than 150,000 homeowners in these highest bands is clear: they face the prospect of paying thousands of pounds more each year in council tax.
Political Fallout and Accusations of 'Class War'
The policy has ignited a fierce political debate. Conservative Shadow Chancellor, Sir Mel Stride, has launched a staunch attack on the Labour government's plans.
He accused Labour of waging 'a class war against middle England'. In a statement to the Telegraph, Sir Mel Stride declared, "If Starmer and Reeves decide to introduce a new tax raid on family homes, they will be punishing aspiration and hitting hardworking people."
He further escalated his criticism, stating, "Under Labour, nothing is safe – not your job, your home, your savings, or your pension." The Tory MP characterised the pre-Budget period as "the most shambolic in memory," blaming "leaking, briefing and kite-flying" for creating economic uncertainty and damaging business confidence.
Broader Concerns Over Economic Chaos
The criticism extends beyond the policy itself to the manner of its announcement. Former Chancellor Sir Jeremy Hunt expressed his concerns on Times Radio, highlighting the international perception of the UK's economic management.
"The whole world is reading this information and they're looking at British economic decision-making," Sir Jeremy stated. "And it looks very chaotic and I don't think that's a good thing."
There are also fears that the revaluation will be acutely felt in certain areas, where up to a quarter of all homes could be reassessed, leading to widespread increases in local tax bills and adding to the financial pressure on homeowners.
