Outdated council tax is robbing us of crucial services

Thursday, 6th October 2022

HMRC bill

Council tax: The banding system enshrined in the original legislation is clearly not fit for purpose

• CAMDEN, like all local authorities has been badly hit by government cuts to local authority funding. Only 7 per cent of funds comes from council tax, so raising more cash from council tax is very difficult.

Council Tax was introduced in 1993 on the basis of estimated property values at 1st April 1991. Hence the top Band H is based on a property valuation of £320,000 and above.

Average price of properties in London now £526,000, prices of houses regularly top £1-£2million, with numerous properties counted in the millions.

Property prices in Camden are among the highest in London: Boy George’s home in Hampstead is currently listed for sale for £17million.

Valuation appeals have to be based on what a property might have cost in 1991, even if the type of property (gated communities, penthouses, duplexes) did not exist in 1991.

With so many properties valued at well over £500,000, the base line of £320,00 is clearly ridiculous. Moreover, all properties valued at £320,000 and above are in the highest band for council tax (B and H): the same as properties valued in the millions.

While the council can within limits (set by the government) raise the rate of council tax, they cannot legally change the banding system to reflect the value of these multi-million pound properties. The banding system enshrined in the original legislation is clearly not fit for purpose.

A change would could provide desperately needed extra resources for council services like youth support, food banks, emergency housing, child care and education.

DEIRDRE KRYMER
Twisden Road, NW5

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