Minister hints at council tax shake-up that would hit owners of large homes

Matthew Pennycook also refuses to rule out wholesale revaluation, which could lead to people paying more for extended homes

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A minister has opened the door to a council tax shake-up that would hit owners of larger houses.
Matthew Pennycook, the housing minister, was asked in the Commons whether the Government would consider imposing extra council tax bands on larger properties.
He said such matters would be considered as part of the local government finance settlement, expected in January.
He also refused to rule out a wholesale revaluation of people’s homes, which could see people paying more if they have extended their houses or made other improvements.
Mr Pennycook also failed to dismiss the prospect of replacing council tax with an annual tax based on a percentage of a property’s value.
It comes a day after Downing Street announced it would allow local authorities to put up council tax by five per cent next year. Such a move would add around £109 to the bill of the average Band D property.
At present, all houses in England are divided into eight bands based on their value in the early 1990s, from Band A at the cheapest to Band H at the top. Those in Band H homes pay twice as much council tax as those in Band D.
Labour-run Wales has added an extra level, Band I, on more expensive homes. These pay 133 per cent more council tax than those in Band D.
During an urgent question in the Commons on Thursday morning, Mr Pennycook was asked whether extra bands could be introduced in England.
John Glen, the shadow paymaster general, asked: “Would the minister as part of his deliberations rule out any additional council tax bands in any future changes that this Government might make?”
Mr Pennycook replied: “We’re not talking about council tax bands in this urgent question, we’re talking about the thresholds that remain in place. 
“We’re committed to those thresholds, but we will set out more details about the local government finance settlement at the appropriate point next year.”
He also refused to answer a question from Bob Blackman, the Tory MP for Harrow East, on whether all homes could be revalued.
Mr Blackman asked: “Does the minister have any plans whatsoever to do a revaluation of properties, given that properties were revalued originally back in 1992, when council tax began?”
Last year, the Commons housing select committee, of which Mr Blackman was a member, put forward a plan to revalue properties but ensure that town halls raised the same amount of money overall.
Mr Pennycook replied: “He tempts me to discuss the local government finance settlement ahead of it being formally presented to this House. I’m afraid I can’t do that but the Government has heard his point and I will ensure it’s passed on to the local government minister.”
Dame Harriett Baldwin, a former minister, said: “The Chancellor and the IMF are known to favour ending council tax and replacing it with a wider property tax. The Welsh Labour government tried to revalue all the properties in Wales for council tax purposes. Can the Government rule out doing either of those things?”
Mr Pennycook replied: “I’m not going to get into speculating about more fundamental reform of the council tax system.
“As I said, the Government will set out its position on the thresholds and other matters in respect of the local government finance settlement at the appropriate point early in the new year.”
The local government finance settlement, to be published in December or January, outlines how much Whitehall will give to councils in grants and how much ministers expect them to raise through council tax and other charges.
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