Sir Keir Starmer has refused to rule out a rise in council tax if Labour win the general election.
In an interview on Tuesday with LBC Radio, the Labour leader repeatedly deflected questions about whether he would carry out a council tax band revaluation.
He insisted that none of his party’s plans involve a hike, against repeated and controversial Conservative claims that Labour will raise taxes.
Labour’s approach to council tax has come under increasing scrutiny in recent days – Yahoo News UK examines what they have said about the system.
What did Starmer say about council tax?
The Labour leader was pressed by LBC Radio host Nick Ferrari about his party’s policy on council tax following an initial question from a caller.
Sid from Caistor, Lincolnshire, asked Starmer if his party would look to change council tax bands or consider changing tax arrangements for private pensions, after it ruled out increasing VAT, income tax or national insurance.
Starmer said: “None of our plans require tax rises over and above the ones we have set out.”
When asked by Ferrari if this would include a council tax band revaluation, Starmer said: “What I am not going to do is sit here two-and-a-bit weeks before the election and write the budgets for the next five years.
“What I can say is that none of our plans require a tax rise, and that is for a reason, and the reason is our focus in getting our economy going, on building, on growing, on raising living standards, on creating wealth.”
What has Labour said about council tax?
Labour’s stance on council tax bands remains confusing.
Earlier on Tuesday, shadow business secretary Jonathan Reynolds was initially more strident than his party’s leader, saying Labour does not plan to redraw council tax bands.
He told ITV’s Good Morning Britain: “No, we have this week said that’s not part of our plans.
“We’ve laid out all of our revenue raising measures in the manifesto, there are things that would produce an immediate cash injection into public services.”
When it was put to him that shadow chancellor Rachel Reeves and Labour’s shadow treasury chief secretary Darren Jones refused to rule out such a move, Reynolds said: “I’m saying all you need to do to look at where the revenue will come from, Labour’s manifesto, is look in the manifesto. There are specific ways we would raise money that would go into public services.”
When asked again about not ruling out a change to council tax bands, Reynolds said: “We’re not going to write a budget for a few years’ time during a general election campaign, but we’ve been absolutely clear where revenue will come from to pay for public services.”
On Monday, shadow paymaster general Jonathan Ashworth told Sky News: “We’re not doing council tax re-banding.”
What have the Tories said?
The Conservatives have said Labour should rule out scrapping referenda on council tax rises.
Under the current rules, parliament can set a limit on council tax increases, which is 4.99% this year.
If a local authority wishes to increase tax above that level, it must hold a referendum first.
The Tories claimed the fact that Labour had not committed in its manifesto to keeping the referendum rules suggested it would “ditch” them in power.
The Conservatives have pledged to keep the rule in place if it remains in government.
Communities secretary Michael Gove said: “We are simply holding Labour to the standard they set for themselves.
“If they can rule out higher taxes in one area, they should be able to rule out letting councils increase taxes on hardworking families.
“If Labour wanted to rule out these taxes on your home, they would.”
Your guide to voting
The manifestos
The leaders
Why are council tax bands such an issue?
Council tax bands determine how much council tax people pay, but in England and Scotland it is based on what the value of your property would have been on 1 April 1991.
This has led many, including finance expert Martin Lewis, to call for an overhaul of the system, although critics say this could lead to higher rates for many people.
He posted on X, formerly Twitter, on Monday: “Disappointed it seems both Labour and Conservatives don’t have the guts to look at council tax bands.
“In England and Scotland these are still based on a 1991 stop-gap seconnd gear valuations (people with a clip board driving by) which has left 100,000s homes in wrong bands, people having to try and figure out 1991 house prices to see if theirs is right, and a convoluted process of challenging bands that’s stacked against consumers.
Disappointed it seems both Labour and Conservatives don’t have the guts to look at council tax bands. In Eng & Scot these are still based on a 1991 stop-gap 2nd gear valuations (people with a clip board driving by) which has left 100,000s homes in wrong bands, people having to…
— Martin Lewis (@MartinSLewis) June 17, 2024
“Yes there’d be losers as well as winners but if we’re going to stick with this form of local taxation isn’t fairness important too?”
In England, properties are put into eight bands from A to H depending on the price they would have sold for in 1991, with band A including properties up to £40,000 and band H referring to homes worth more than £320,000.
The average rate of council tax for a band D property has risen 24.1% since 2019/20 and 53.5% since Labour was last in power in 2009/10.
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