Prime Minister Andy Burnham has signalled support for reforming the council tax system in England, which has not seen property revaluations for more than 30 years. Speaking to the BBC, he said the current framework is unfair, with some owners of larger homes in London paying less than households in Greater Manchester. Any overhaul could reduce bills for some households while increasing them significantly for others, particularly those in expensive properties or homes that have risen sharply in value due to renovations.
Outdated banding system under scrutiny
Council tax bands, ranging from A to H, are based on property values from the 1990s. The typical home falls into Band D, where the average annual bill in England stands at £2,392. Because most homes have not been revalued in over three decades, newer properties are also assessed using this outdated baseline, perpetuating disparities across the country.
Burnham told the BBC: "There are people here in Greater Manchester who pay a much higher council tax than people living in much larger homes in London." He praised former Chancellor Rachel Reeves for beginning the reform process, stating: "The Chancellor before, Rachel Reeves, was right to start to reform council tax to create some fairness there in relation to people in homes that are of much greater value who haven't seen their council tax go up over the years because of the failure to revalue the banding."
Potential impact on household bills
The Prime Minister acknowledged that any changes would require careful consideration. He added: "If I was to bring forward any changes people would rightly say 'is this consistent with that (2024) manifesto?' so there are big decisions ahead." This suggests that while reform is being considered, political and practical hurdles remain before any new rules could be implemented.
Households living in more expensive homes, or those whose property value has increased substantially due to improvements, could face significantly higher bills under a revised system. Conversely, some households in lower-value properties may see their payments reduced. The exact outcomes would depend on how the government chooses to revalue properties and adjust band thresholds.
Next steps for council tax reform
No specific timeline or detailed proposals have been announced. However, Burnham's comments indicate that reform is a priority for his administration, building on the groundwork laid by Rachel Reeves. The government will need to balance fairness objectives with the manifesto commitments made in 2024, and any changes are likely to be subject to public consultation and parliamentary scrutiny.
For now, homeowners across England should monitor official announcements for updates on potential changes to council tax bands and rates.
