Call to tax rich to get rid of Council Tax

Plans for a new 10% supertax band on incomes over £200,000 a year have been
proposed by the New Local Government Network to finance the phasing out of
Council Tax, as well as rebranding the council levy as ‘a local property levy’.

The independent local authority think tank said the move, calculated to raise
£3.7 billion to finance a cut of £205 in average Band D bills is needed to take
pressure off council tax to enable “urgent” reforms without penalising

Other reforms the body proposes include a revaluation of properties in
England for the first time since 1991, with property prices then tracked
annually, new fiscal autonomy to allow councils to vary banding rules to reflect
local property prices and the end of central government capping of local
property levy increases.

Think tank report author Dick Sorabji described council tax as ‘broken’.

Liberal Democrat local government secretary Julia Goldsworthy said the report
showed council tax could not go on but that ‘tweaking’ it in the way proposed
was no answer. It should be abolished and replaced with ‘a fair and progressive
system based on ability to pay’.

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