Tory Warning Over Labour's 'Left-Wing Plot' for Higher Council Tax
Sir James Cleverly issued a stark warning last night that a future Labour government could impose a 14-band council tax system on England, potentially forcing families in Middle England to pay thousands of pounds more each year. The Conservative housing spokesman accused Labour of orchestrating a 'Left-wing plot for higher council tax' that might see households in the top band paying nearly nine times more than those in the lowest bracket.
The Scottish and Welsh Blueprints
Currently, Britain operates with eight council tax bands, labelled A through H, with Wales having an additional band. However, the Scottish government recently unveiled plans for a 14-band model, while the Labour government in Wales is conducting its own council tax revaluation, exploring similar proposals to introduce extra bands with higher multipliers.
A Welsh government consultation in 2023 proposed a 12-band system where households in the highest band would pay nine times more than those in the lowest. This aligns with Prime Minister Sir Keir Starmer's previous description of the Welsh Labour government as providing a 'blueprint for what Labour can do across the UK'.
Potential Financial Impact on Households
The Conservatives have calculated that if England adopted Scotland's proposed model, the financial consequences would be severe. Under the new structure, band K would pay 4.2 times the current band D council tax of £2,280, amounting to £9,626 annually. Band J would face bills of £8,361, while band I would pay £7,346.
Sir James Cleverly asserted that Chancellor Rachel Reeves is actively seeking more revenue from 'ordinary people', stating: 'When it comes to council tax, the SNP and Labour are a match made in heaven. However much they hike it, they can't get enough.' He described Scotland's council tax consultation as a 'Left-wing blueprint for how to tax the middle class'.
The current council tax bands in England are still based on property values from April 1991, with councils setting bills within these established bands. Meanwhile, the Institute for Fiscal Studies think-tank has urged the Chancellor to consider doubling council tax bills for bands G and H, which would increase average annual bills to £7,600 and £9,120 respectively.
Additional pressure comes from reports that Ms Reeves is also contemplating an annual mansion tax. Despite these developments, the Government maintains it has 'no plans to change council tax bands in England to mirror those proposed in Scotland or Wales'.
