""Council tax (before any discounts) is currently a lower percentage of property value for high-value properties than for low-value properties," the report explains. For example, B and H homes pay around three times as much as Band A homes in the same area, even though they were worth "at least eight times as much - and usually far more - in 1991.""
"The IFS says this structure is "hard to justify" and suggests raising rates for higher bands to make the system fairer. Local authorities, it adds, could still choose to adjust other bands to keep average bills steady. If the government adopted the IFS's most ambitious option - doubling Bands G and H - it would affect about 4% of homes in England."
Doubling council-tax rates for Bands G and H is proposed to address regressivity created by 1991 valuation bands and rising house prices. The change could raise around £4.4 billion a year by 2029-30 and would affect roughly 4% of homes in England. Higher-band owners could see their bills almost double, with regional variation making some areas face much larger increases. The Chancellor is reportedly reviewing the idea ahead of the November 2025 Budget. Local authorities could adjust other bands to keep average bills steady if higher rates are introduced.
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