Council tax: households in some bands could pay double bills to facilitate reduction for most under new plans
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A shake-up in council tax could cut bills for the majority while balancing costs fairly 💰
- A new proposal could cut council tax bills for the majority of households
- Some homeowners with bigger or more expensive properties may pay more
- The plan could save most households around £45 a year
- The changes aim to make council tax fairer across different types of homes
- Longer-term reforms could include a full council tax review and extra charges on foreign buyers
Millions of homeowners in the UK could see their council tax bills fall under a bold proposal that would make the richest households pay significantly more.
A think tank influential with the Government has suggested doubling the highest council tax rates while cutting bills for lower-band properties, potentially saving most households around £45 a year.
The Institute for Public Policy Research (IPPR) said a 100% hike for Band H homes, typically valued at over £1.5 million, could be paired with a 50% rise for properties in Bands F and G.
Meanwhile, households in the lower A to D bands, which make up roughly 80% of homes, could enjoy reduced bills.
The proposal could raise nearly £4 billion for local councils, with around £1 billion redirected to cutting bills for those in smaller, more affordable homes.
According to the IPPR, this would rebalance a system that currently asks relatively more of people living in modest properties than those in some of the country’s most expensive areas.
The think tank highlighted striking disparities: for example, an average Kensington resident pays less council tax than someone in Blackpool, despite owning a home worth far more.
Aditi Sriram, economist at IPPR and lead author of the report, said: “The current council tax system is unfair, inefficient, and long past its sell-by date.
“Our proposal cuts bills for the vast majority of households while asking those with the greatest property wealth to pay a fairer share.”
The IPPR also suggested raising the extra tax on foreign buyers of UK homes from 2% to 6% to discourage property speculation.
In the longer term, they want a full review of council tax by the end of this Parliament, which could pave the way for a fairer property tax system.
Carsten Jung, associate director for economic policy at IPPR, said these changes could help millions of people save money straight away, especially in less well-off areas, while also making the system fairer in the long run.
“This is exactly the kind of policy we should expect from a Government relentlessly focused on reducing the cost of living,” he added.
If the plan goes ahead, it could be one of the biggest changes to council tax in decades, cutting bills for most households while asking owners of the most expensive homes to pay more.
Most of us see council tax as one of life’s unavoidable household expenses, a bill that arrives every month but often feels mysterious in where it actually goes. But in reality, this local charge plays a vital role in funding many of the services that keep communities running day to day.
With household expenses continuing to rise and energy bills still higher than pre-crisis levels, more people are turning to Utility Warehouse (UW) to save money. UW lets you bundle services like broadband, mobile, energy and insurance into one streamlined account—reducing hassle while unlocking multi-service discounts. The more you bundle, the more you save.
Customers benefit from a single monthly bill, up to £400 towards early exit fees, and access to cashback on everyday spending. UW also offers the UK’s cheapest variable energy tariff when bundled, helping shield households from further price hikes.