Council Tax Model - why based on House Valuation?

amarcusj69

Ha - one can only wish right?! 

lincroft1710

amarcusj69 said:

The 2019 report for Wales is looking at a revaluation exercise and a new model (which - as noted earlier - would remove the 25% single-person discount). 

Houses prices have increased sig. and I agree the bandings from 2003 are out of date (1991 in England!). However, certain house types have increased at a greater rate than others because they are fewer - linked directly to how house builders have a) chosen to build more smaller properties to maximise the profit on a piece of land, and b) the need to have more houses in the first place to allow FTB-ers to get on the ladder. The Welsh model is going to ignore this and seek to set the bands at levels where houses that were in say E today would jump to H tomorrow, with an increase of c.30% on the current CT bill. At the same time those smaller properties would drop by 30%. Yet the occupancy percentages since 2003 are pretty much the same! 

Surely this does not pass the common sense test? 

It doesn't need to pass "the common sense test" As long as a tax is relatively easy and cost efficient to collect, does not cause too many problems in its administration and does not cause public riots, it makes "sense" for the government  to push a bill through Parliament to enact the relevant legislation and introduce that tax

molerat

They tried it in the late 80s / 90s, each adult was taxed.  Called Community Charge or Poll Tax.  The peasants revolted against it, demonstrations and riots, and it was quickly replaced with what we have today.  The SNP looked into an income tax based model but I suspect that was a bit more akin  to the poll tax they were so against, the real reason for it being quietly dropped was likely the demographic it would adversely affect - core SNP supporters. When we went from poll tax to council tax our payments almost doubled overnight.  Bandings are easily manipulated for political gain as has been done in Scotland, E and above pay a higher split that in England & Wales and Wales has added an extra band.