Tuesday 23 January 2007 11.11am
[continued from this thread
Why do I pay more council tax on a one bedroom flat in London than a family with a four bedroom house in Yorkshire? Local property valuations should be taken into account - wait wasn't that how the old rates worked?
Umm, you don't, because they *are* indirectly taken into account!
You might be in the same band (though frankly it's unlikely unless your one bedroom flat is in Chelsea and the four bedroom house is in downtown Doncaster), but if a larger proportion of houses are in a higher band, the actual tax rate for that band will be lower.
That's why Sedgefield (I believe we know the MP) has the highest Band D Council tax in the country and Westminster has the lowest. It all works out because say Sedgefield Band D is £1400 and Westminster is £400, the difference is much lower in reality. Most people in Sedgefield are in Band A, so would actually pay £900, whereas an average Westminster home is probably Band F, so would pay £600.
That's an extreme example, and people in wealthier areas will usually pay more, because the Government gives the Council less from central taxes. Westminster and so on just do implausibly well (it used to be because they counted people staying in hotels as homeless, I don't know what it is now).