Council tax could go up for London residents in shakeup by Keir Starmer

Rafi Mauro-Benady
·2-min read
Labour Party leader and Britain's Prime Minister Keir Starmer stands with London Mayor Sadiq Khan at a reception for London Labour
-Credit: (Image: Leon Neal/Getty Images)


A shakeup to the council tax system by the Labour government could leave London residents paying more council tax. As it stands, a home pays its council tax based on its value in 1991 - over 30 years ago.

The old system may be scrapped to make way for a new one in the autumn budget this October, reports Hargreaves Lansdown. The new system under Prime Minister Keir Starmer may see people pay a percentage of their home’s value each year as council tax instead.

READ MORE: Sadiq Khan's defiant message to NIMBYs as he outlines plan to build thousands of extra London homes

"This could see bills fall for some but those in London and the South would likely see rises because of higher property prices," reports the financial services company.

As it stands, all homes are given a council tax valuation band by the Valuation Office Agency (VOA).

Chancellor Rachel Reeves speaks at a podium
Chancellor of the Exchequer Rachel Reeves will deliver the budget on October 30 -Credit:PA Wire/PA Images

Chancellor of the Exchequer Rachel Reeves will present her autumn budget to parliament on October 30.

Ms Reeves has promised Britain’s 'best days lie ahead'. In her first speech to the Labour Party conference as Chancellor, she said: "My ambition for Britain knows no limits because I can see the prize on offer if we make the right choices now.”

Despite this, Sir Keir has warned unions of 'tough decisions on the horizon' over pay. He added that the government will 'not risk its mandate for economic stability'.

Speaking to the BBC he said: "The purpose of the difficult decisions is to make sure we grow the economy, living standards, everyone better off. Our public services back properly functioning, an NHS that's on its feet."

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