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Tax review backs new price bands Tax review backs new price bands
(about 11 hours later)
The Lyons review of local government funding is to call for two extra council tax bands at either end of the price spectrum, the BBC has learned.The Lyons review of local government funding is to call for two extra council tax bands at either end of the price spectrum, the BBC has learned.
The report will recommend adding a new band for the most expensive homes and an additional lower one for the cheapest properties.The report will recommend adding a new band for the most expensive homes and an additional lower one for the cheapest properties.
It will also say that people entitled to council tax benefit should gain it automatically instead of being claimed.It will also say that people entitled to council tax benefit should gain it automatically instead of being claimed.
However, it will call for council tax revaluation before any changes.However, it will call for council tax revaluation before any changes.
BBC local government correspondent John Andrew said that there was speculation that homes worth around £1m would be included in the new top band.BBC local government correspondent John Andrew said that there was speculation that homes worth around £1m would be included in the new top band.
More changesMore changes
However, our correspondent said that these proposed changes could be years away because of uncertainty over when revaluation would actually take place. It will definitely not happen in the life of the current parliament.However, our correspondent said that these proposed changes could be years away because of uncertainty over when revaluation would actually take place. It will definitely not happen in the life of the current parliament.
Other recommendations include allowing people to hold more in savings before losing the right to council tax help.Other recommendations include allowing people to hold more in savings before losing the right to council tax help.
A tourist or bed tax is also recommended as an extra source of local authority income, although it would be up to councils whether they adopt one or not.A tourist or bed tax is also recommended as an extra source of local authority income, although it would be up to councils whether they adopt one or not.
The report, which only applies to England, will not suggest returning the business rate to local control.The report, which only applies to England, will not suggest returning the business rate to local control.
Currently, the top-priced homes pay three times as much as the cheapest.Currently, the top-priced homes pay three times as much as the cheapest.
Tony Travers, of the London School of Economics, said: "I don't think this report is going to suggest the upending of our whole system of local government finance - but what it may do is make some small changes which themselves could be very controversial.Tony Travers, of the London School of Economics, said: "I don't think this report is going to suggest the upending of our whole system of local government finance - but what it may do is make some small changes which themselves could be very controversial.
"The interesting thing about council tax and other local taxes and charges is that people tend to feel them, unlike national taxes that they don't really sense in the same way. So in that sense, any small change can have a big, big impact on millions of people.""The interesting thing about council tax and other local taxes and charges is that people tend to feel them, unlike national taxes that they don't really sense in the same way. So in that sense, any small change can have a big, big impact on millions of people."

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