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Council tax hike 'in pipeline' for £1m homes

Council tax on houses worth over £1 million could be nearly doubled if speculation over the contents of a forthcoming independent review proves correct.Sir Michael Lyons' report on local government finances, due to be published on Wednesday as part of the Budget package, could recommend the establishment of a new band of council tax.Currently the top band is levied on houses worth over £750,000 but newspaper reports claim that a new top threshold of 1 million is being considered.Properties worth over this value could face a rise from £2640 to £4,400, according to the Times. An alternative increase could see current annual council taxation rise by £1,000.It remains to be seen whether the Treasury supports the as-yet unconfirmed proposals, however.Newspaper reports offer mixed 'insider' comments. While chancellor Gordon Brown may favour the rumoured proposals' progressive nature the backlash â€" opposition from middle-class families in the south-east of Britain â€" could deter him from offering outright support.Council tax bands were last allocated in 1991, when houses today valued at £100,000 were then worth a meager £40,000.

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