New analysis highlights the immense difficulty of reforming Council Tax, warning that a recent proposal to double the tax rate for the highest bands (G and H) without a proper property revaluation would lead to “perverse” and unfair outcomes.

The current system, which is based on 1991 property values, is widely criticised as outdated. While a full revaluation is predicted to lower average bills across the North and Midlands and increase them in London and the Home Counties, the proposed fix avoids this complex revaluation.

The Flawed Proposal:

Reports suggest Chancellor Rachel Reeves is considering simply doubling the council tax rate for the one million homes in bands G and H in England, without updating the 34-year-old property valuations.

The Perverse Outcome:

Analysis by PoliticsHome reveals that this approach would largely punish ‘old money’ areas—constituencies that were expensive in 1991—while leaving soaring property wealth in newly gentrified areas largely untouched:

• Uneven Impact: Up to 40% of homes in historically expensive areas like the Cities of London and Westminster are in the top bands and would be affected.
• Extreme Disparities: Homes in areas that have seen massive price growth since 1991 (e.g., Walthamstow, where the average home is now worth over £500,000) would be largely missed due to their low 1991 valuations. In contrast, homes in other parts of the country, now valued lower, would see their bills potentially quadruple if they fall into band H based on the old valuation.
• Impact on the ‘Not Uber Wealthy’: Tax experts warn that a doubled Band G bill—reaching over £8,000 in some areas—would hit middle-income households, potentially leading to falling house prices and stalling housing developments in those areas.

Experts conclude that attempting to raise significant revenue by doubling the top rates without a broader revaluation “spectacularly fails to work out” and simply entrenches the existing system’s extreme geographic disparities.