Council tax reform

Monday 1st December 2025

(2 days, 2 hours ago)

Petitions
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The petition of residents of Hartlepool,
Declares that the current system of Council Tax is no longer fit for purpose given the substantial variations in property band prices across different local authorities.
The petitioners therefore request that the House of Commons urges the Government to look into all appropriate measures to fix the broken council tax system to establish a fairer system for residents and local authorities.
And the petitioners remain, etc.—[Presented by Mr Jonathan Brash, Official Report, 11 November 2025; Vol. 775, c. 130.]
[P003123]
Observations from the Minister for Local Government and Homelessness (Alison McGovern):
The valuation of all properties in England is carried out by the Valuation Office, who undertake this role independently of Ministers. Variations in council tax levels reflect the service needs of each area, having taken account of their other sources of income. It will also reflect historical council tax decisions taken by local authorities over several decades. The Government maintain the referendum principles, and authorities that choose to increase their council tax above this must obtain the approval of voters.
Announced at the autumn Budget, the Chancellor set out that a new high-value council tax surcharge will be introduced in 2028-29, and will be levied on owners of residential properties in England worth £2 million or more. This new charge will ensure that those with the most valuable properties pay their fair share. The charge will be levied in addition to existing council tax. Current council tax bands will not be affected and will still apply.
The Government are committed to ensuring that the council tax system is fair for taxpayers and local authorities, and will continue to keep council tax under review. As part of the fair funding review 2.0, for example, the Government have consulted on proposals to fully account for how much different areas can raise from council tax within grant funding allocations. The Government will continue to monitor the effectiveness of the system.