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Social Partner

Labour plans council tax shake-up that could see rich areas pay more

Labour is proposing a significant reform to council tax funding, aiming to make it fairer by directing more central government funds to areas with the highest need.
The new approach seeks to alleviate the burden on local authorities that currently impose large council tax increases with little return, by enabling them to request lower rises.
The reform will likely result in less central funding for areas where local services are not as stretched.
A Ministry of Housing, Communities and Local Government official said the current system has led to "perverse outcomes" and the new plan aims to be fairer to councils that have historically faced difficult financial decisions.
A consultation has been launched by the MHCLG to evaluate how new funding allocations will be made, including assessing needs for adult social care, children's social care, and Special Educational Needs and Disabilities funding.