Council Tax Loophole Exposed: 1993 Freeze Lets Large Homes Avoid Fair Share
Over 118,000 households in Walsall are set to receive their council tax bills in the coming days, with a significant increase of 4.99 per cent for the 2026/27 financial year. This rise comes as the borough, ranked among the most deprived local authorities in the country, faces a Band D council tax charge that places it within the highest 10 per cent nationally.
The overall council tax bill for Walsall over the next twelve months will total £203.7 million, marking an increase of £12.6 million compared to the previous year. Despite this hike, Mark Fearn, customer engagement lead at Walsall Council, noted that collection rates remain robust, with approximately 98 per cent of bills being collected, even if the process extends over many years.
Charges Per Council Tax Band for 2026/27
- Band A – £1,521.86
- Band B – £1,787.17
- Band C – £2,042.48
- Band D – £2,297.79
- Band E – £2,808.41
- Band F – £3,319.03
- Band G – £3,829.65
- Band H – £4,595.58
At a scrutiny committee meeting held on March 12, 2026, authority leader Councillor Mike Bird highlighted Walsall's impressive collection rates, stating, "Our collection rates are one of the highest, if not the highest, in the West Midlands. This is why we win awards. All those people who criticise Walsall Council and Walsall as an area, they don’t know."
Main Grievance: The 1993 Freeze Loophole
However, Councillor Bird expressed his primary concern regarding a longstanding council tax loophole. He pointed out that when homeowners replace a small property, such as a two-bedroom bungalow, with a much larger structure like a seven-bedroom building, they continue to pay the lower council tax rate associated with the original property until the property is sold.
"When I see two-bedroom bungalows being mowed down and a seven-bedroom building in its place, they still pay the same rates as the two bedroom bungalow until they move," Bird explained. "Now, that is something that we as an authority should be looking into to get a grip of this. If you look at the character of the area now it’s changed dramatically and yet these people are paying a lower rate than those in poorer circumstances. It’s so unjust."
Chair of the scrutiny committee, Councillor John Murray, echoed these sentiments, agreeing that the issue is deeply frustrating. "It irks me as well because there has never been a re-evaluation since 1993," Murray stated. "So, any property where a two-bed bungalow or small three-bed is demolished and something akin to a small hotel is built in its place, somebody who built that in 1993 means for all these years they’ve been paying the rate for a two-bed bungalow and living in a seven or eight bed where three families and three incomes live. It’s totally wrong."
Murray further emphasized the broader impact, adding, "There are far too many families in the borough who are getting away without paying their fair share." In response to these concerns, committee members approved a motion to refer the issue to the cabinet for further action and potential reform.
Mark Fearn reminded the committee that current legislation prevents a re-evaluation of council tax bands until a property is sold, underscoring the need for legislative change to address this loophole effectively.
