Politics

Council tax hike for Millions under plans proposed by Rachel Reeves

Millions of Britons could see their council tax hiked up under plans by Labour’s Rachel Reeves.

The Shadow Chancellor wrote a pamphlet in 2018 which endorsed a “re-evaluation and revision” of existing council tax bands, which were set in 1991.

The Labour frontbencher has repeatedly ruled out tax rises under a Labour Government.

However, changes to council tax bands would not be a universal tax increase. While tax would likely rise for many some households would see a drop in payments.

According to the Sunday Telegraph, a revision of the banding could cost four million households £1,200 a year.

Reeves said at the time: “Council tax, based on 1991 valuations, is at the very least long overdue a re-evaluation and revision of existing bands – a power which could be devolved to local government to match local needs.

“We should also consider the case for its overhaul and replacement with a property tax, levied on property owners.”

A Labour spokesman has since said there are “no plans” for a revaluation in the first term of a Government run by Sir Keir Starmer, but would not rule it out completely.

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