UK Chancellor Reeves Plans New Council Tax Bands Targeting Expensive Homes

Chancellor Rachel Reeves is considering introducing new higher bands of council tax targeting owners of expensive homes as part of her upcoming Budget strategy to address a significant fiscal shortfall. The current council tax system, based on 1991 property valuations, is seen as outdated and unfair, with owners of multi-million-pound properties sometimes paying similar rates to those with much cheaper homes. Reeves aims to raise several billion pounds by implementing these changes, potentially including doubling council tax rates on the highest bands, which could yield around £4.2 billion. This move is part of a broader effort to increase taxes on the wealthy, alongside discussions of a mansion tax and potential income tax adjustments, to ensure a fairer tax contribution from high-value property owners. The proposal echoes earlier plans from former Conservative Chancellor George Osborne, though previous attempts were blocked. The changes are expected to disproportionately affect London due to its high property values and are part of a larger political and economic strategy to balance public finances without burdening low-income earners.