The All-Party Parliamentary Group (APPG) on Local Government has called on Andy Burnham, who is expected to become Prime Minister following Sir Keir Starmer's resignation, to implement a progressive overhaul of council tax. The proposed reforms include introducing new tax bands for the highest-value properties and scrapping the 5% cap on annual increases without a local referendum.
Cross-Party Support for Reform
The APPG, chaired by Labour MP Clive Betts and supported by politicians from Labour, the Conservatives, and the Liberal Democrats, argues that the current system is outdated. The group's report states: "This change would make council tax more progressive, better reflect contemporary property values, and ensure that those with the greatest housing wealth contribute a fairer share towards local services."
Scrapping Referendum Rules
The group also calls for the abolition of council tax referendum rules, which generally prevent councils from raising bills by more than 5% without a local vote. They argue that these rules have been undermined after seven councils were allowed to exceed the cap this year without holding referendums.
Clive Betts told the Telegraph: "In the end, councils which are elected should be responsible for explaining local tax to local voters. Those voters will decide whether councils behave reasonably for the level of council tax they are levying."
Criticism from TaxPayers' Alliance
However, the proposals have faced opposition. John O'Connell, chief executive of the TaxPayers' Alliance, said: "Letting councils hike tax as much as they like and slap new bands on family homes would be little more than a blank cheque for local bureaucrats. Scrapping referendum protections is an obvious cash grab that would let councils dodge accountability while hammering local taxpayers with even higher bills."
