Council Tax

Lord Bishop of St Albans Excerpts

Thursday 22nd July 2021 Lords Chamber

[Lord Greenhalgh (Con)]

My noble friend’s suggestion has some merit. Even a limited revaluation would be costly and would yield significant extra revenue only in those parts of the country where house prices are the highest, given that council tax income is not redistributed. It would also leave council tax payers in a rather odd, and arguably less fair, situation where some were paying their tax based on 1991 values while others were doing so based on prices in the present day.

[The Lord Bishop of St Albans [V]]

According to the citizens advice bureau, council tax is the most common debt problem faced by families in Britain, with 86,000 people in England struggling to keep up with payments. The current system heavily favours the south-east and disproportionately disadvantages the poor. As part of the levelling up agenda, what consideration have Her Majesty’s Government given to a land value tax to address these inequalities?

[Lord Greenhalgh (Con)]

My Lords, the Government do not have any plans to introduce such a land value tax, but they are committed to supporting those on low incomes, including by increasing the living wage and by spending £111 billion on welfare support for people of working age in 2020-21.