UK Councils Consider Increases to Council Tax

The UK government, under Deputy Prime Minister Angela Rayner, is promoting a 'devolution revolution' aimed at transferring powers from central government to local councils, hoping to address deep-seated inequalities in health, wealth, and opportunity. However, this initiative has raised concerns about the introduction of a controversial 'mayoral precept' tax, which could affect up to seven million households, potentially increasing their council tax by £56 annually. The approach has been met with criticism, particularly regarding Labour mayors' track records of increasing taxes significantly, with some councils already discussing surpassing standard tax limits for 2025-26. Meanwhile, there is growing awareness of the inequities in the council tax system itself, as highlighted by MP Jonathan Brash, who argues that the current tax structure unfairly burdens lower-value property owners compared to their wealthier counterparts. Calls for reform are emerging, with suggestions that the system remains outdated due to a lack of property revaluations since 1991, leaving it regressive and inequitable. As councils grapple with budget constraints and rising demands, the debate over tax structures and local governance continues to intensify.