Labour plan to raise council tax in Wales is ‘road-test’ for England

SIR KEIR STARMER was last night accused of using Wales to “road-test” plans to raise council tax by hundreds of pounds a year in England.

The Welsh Government is consulting on proposals to introduce higher council tax bands to ensure those in larger properties pay more than at present.

They are also looking at scrapping the single person’s 25 per cent discount and want more frequent revaluations so people have to pay more if they increase a property’s value by carrying out renovations.

Labour said although it was carrying out a review of the tax system, there were no current plans to adopt the ideas in England. Tories said the plans, if introduced in England, could see hundreds of pounds a year added to average bills. Greg Clark, the Levelling Up Secretary, said: “Keir Starmer’s Labour Party is using Wales to road-test their plans to hike up taxes on people’s homes.

“Hard-working people who have saved and improved their homes will face soaring tax bills: a tax on aspiration and pride in your house and neighbourhood.

“Widows, widowers and singletons face the prospect of their single person discount on their bills being ripped away, despite the fact they use council services less.

“Family homes will face soaring local tax bills, without any improvement in local services, as Labour tax the increases in house prices over recent years.”

In England there are eight council tax bands, with the highest-value homes paying no more than double the average home. Research from the Institute for Fiscal Studies, commissioned by the Labour Government in Wales, suggested there should be extra bands placed on top. It would see the highest-value homes paying four times as much as the average home.

The Tories said that, if introduced in England, that would push the top council tax band to £7,864 a year – leaving many in London and the South East facing huge bills.

The Welsh document, published last month, said: “A revaluation would enable the Welsh Government to create new bands and choose new tax rates for each band.”

A Labour spokesman said the housing system and market in Wales is different to England and what works there may not be right for the rest of the UK.

They added: “Rachel Reeves [the shadow chancellor] and Keir Starmer have been clear that one of their priorities is reviewing Britain’s tax system so it is fair for hard working people.”