IPPR Proposes Doubling Council Tax on Top Band Homes

A think tank influential in UK policy circles has proposed a major overhaul of the council tax system, doubling rates for the owners of the most expensive homes while cutting bills for the majority of households, in a move that could generate billions for public services.

The Institute for Public Policy Research (IPPR) outlined the plan in a report released this week, ahead of the government's Autumn Budget. It calls for a 100 percent increase in council tax for properties in Band H, which typically cover homes valued at more than 1.5 million pounds today. Rates for Bands F and G, encompassing properties originally valued between 120,000 and 320,000 pounds in 1991, would rise by 50 percent. In contrast, households in the lower Bands A through D, which account for about 80 percent of homes, would see their bills reduced by an average of 45 pounds annually.

The proposal aims to address longstanding inequities in the council tax framework, which has remained unchanged since 1991 in England and Scotland, and 2003 in Wales. Valuations from those dates no longer reflect current property values, leading to disparities where residents in affluent areas like Kensington, west London, pay...