Treasury refuses to rule out council tax overhaul

Chancellor Rachel Reeves has not ruled out an overhaul of council tax that could mean higher bills. While Labour had previously said reforms such as a revaluation, adding extra bands or raising rates for more valuable properties were not on the agenda, the Treasury has refused to repeat the pledge, saying only that Reeves wants to "keep taxes for working people as low as possible." Writing in the Observer, Andrew Rawnsley says that council tax is outdated, regressive and in urgent need of reform, still being based on 1991 property valuations. He says that while scrapping stamp duty may be politically difficult, modernising council tax offers Reeves the best chance to act as a reforming chancellor. Updating bands or introducing proportional property or land value taxes could make the system fairer and more effective, he adds.

The Observer (24/08/2025)   The Sunday Telegraph (24/08/2025)