Councils should not be used to run a national tax for high-value properties that could be expensive for them to administer, confusing for residents and damaging to local accountability, the LGA has warned.
The High Value Council Tax Surcharge – set by central government – would be charged on homes in England valued above £2 million.
Councils would be responsible for billing, collecting and enforcing the surcharge, but would have no control over the tax rate, eligibility rules or exemptions.
They would also need to identify liable owners, administer deferrals, manage appeals and pursue debt recovery – including from overseas owners.
Councils will not retain the income they collect, which will be returned to the Treasury. And while the Government has said the revenue raised will support council services, it has provided little detail about how this will work
Cllr Kam Rai, Chair of the LGA’s Resources Committee, said: “The surcharge is a national tax, yet councils would be left to administer it, carry the risk and deal with the confusion it will create for residents.
“Without full funding for implementation costs and clear accountability, this proposal risks adding cost and complexity at a time when councils are already under enormous pressure.
“We need a cast-iron guarantee from government that any money raised must be genuinely additional and must not be used to offset reductions elsewhere.
“Councils should not be expected to run a new national tax system that could leave them out of pocket and undermine local democratic accountability.”