UK government rejects calls for council tax band adjustments
Eric Pickles, the local government secretary, has confirmed that the UK government has no plans to change council tax bands in the UK which where last set in 1991 and reviewed in 1993. If a reassessment of the council tax bands was to take place it is almost inevitable that a significant number of families would see themselves pushed into the higher tax band thereby taking more money away from their monthly budgets when they can least afford it.
The government is acutely aware that a potential revaluation of council tax funds would cost each family in the UK on average £1600 over the lifetime of the current Parliament. However, while it has made a promise not to revalue tax bands before 2015 it seems as though a review is on the cards after this date. When you consider the massive increase in property prices over the last 20 years, even taking into account the recent downturn, the UK government is potentially missing out on millions if not billions of pounds. Or is the government playing it safe?
You could argue that the UK government has decided to wait until 2015, when house prices are likely to have recovered, before setting a higher level of tax bands for the future. Or are we being harsh?
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