Council tax hike for MILLIONS under plans proposed in pamphlet by Rachel Reeves

Council tax hike for MILLIONS under plans proposed in pamphlet by Rachel Reeves

WATCH: Sir Keir Starmer responds to Jeremy Hunt’s Budget

GB NEWS
Dan Falvey

By Dan Falvey


Published: 17/03/2024

- 08:51

Updated: 17/03/2024

- 09:00

It is thought a re-evaluation would cost four million households £1,200 a year

Millions of Britons would see their council tax hiked up under plans previously advocated 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.

\u200bRachel Reeves

Rachel Reeves said a re-evaluation was 'long overdue'

PA

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.

LABOUR'S PLAN FOR BRITAIN:

\u200bRachel Reeves

Rachel Reeves has ruled out any tax rises as Chancellor

PA

Reeves is not the only person on the Labour frontbench to have previously advocated for council tax reform.

Starmer’s shadow local government minister, Jim McMahon, has also previously backed the move.

"We should look back and recognise that there has been a collective failure on council tax revaluation and the need to modernise," he said in 2020.

"Governments duck this because it is not popular, but we now have a system that is very unfair."

A Labour spokesman said: "The ideas in this pamphlet are not policy and will not feature in our manifesto.

"We have been clear that we want taxes to be lower for working people.

"Our plans to close tax loopholes and create a fairer tax system proved to be so common sense that the Tory government copied them in the Spring Budget.

"The only threat to the UK economy is five more years of Tory economic vandalism that has left working people worse off with higher bills, rising mortgages and the country in recession."

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