A cross-party group of lawmakers is urging Andy Burnham, the Mayor of Greater Manchester, to allow councils to increase council tax on the UK's most expensive homes [1].
This push for reform aims to generate more revenue from the wealthiest homeowners to address a tax system that some lawmakers and officials said is unfair. If successful, the changes could fundamentally alter how local governments fund public services by shifting the burden toward high-value real estate.
The All-Party Parliamentary Group on Council Tax has called for the removal of the requirement for local referendums on large tax hikes [2]. The group said they urge Burnham to let councils raise council tax by as much as they want [2]. Without the referendum rule, millions of households could face larger council-tax increases [3].
Burnham said the current system is "highly regressive" [4]. The push for reform focuses on properties valued at more than £2 million [1]. One proposal suggests a separate "mansion tax" that could add up to £7,500 per year for those specific homes [1].
There is a tension between two different approaches to the tax hike. One path involves a targeted mansion tax on the most expensive properties [1]. The other path involves a blanket removal of the referendum rule, which would grant councils broader authority to raise taxes without a specific mansion-tax structure [2].
Lawmakers said the current structure fails to capture the true value of the UK's most expensive assets. By removing the democratic hurdle of a referendum for tax increases, councils could potentially secure immediate funding for local infrastructure, and social services without waiting for a public vote [2].
“The current system is 'highly regressive'.”
The proposal represents a shift toward progressive taxation at the local level. By targeting properties worth over £2 million and attempting to bypass referendum requirements, proponents seek to decouple essential local funding from the volatility of public votes on tax increases. This move would likely increase the financial burden on the UK's wealthiest homeowners while providing councils with more autonomous fiscal power.
