Big council tax rise likely for wealthy

Wealthy property owners face a large increase in their council tax bills under Government plans to be announced this week.

Wealthy property owners face a large increase in their council tax bills under Government plans to be announced this week.

A long-awaited review of the banding system could result in a redistribution of the council tax burden with poorer households paying less, according to a report in The Sunday Telegraph.

The Balance of Funding Review is also said to propose an increase in the number of payment "bands" in 2007, when a nationwide property evaluation takes place. The current system uses 1991 property prices. Properties in the average band D property were priced between £68,000 and £88,000 (£155,000 to £200,750 at current prices).

A new system of rebates would be introduced for householders living on benefits or pensions.