41 Rejected

Devolution of council tax powers enhances democratic engagement by residents.

Conclusion
Council tax is one of the main interactions with local government that residents will have. Giving councils more power over, and therefore more responsibility for, setting council tax will improve democratic engagement by residents. (Conclusion, Paragraph 157)
Government Response Summary
The government explicitly rejects the implied recommendation to devolve full responsibility for setting council tax to individual councils, stating that council tax is already localized with authorities having powers over setting levels and administering the tax.
Government Response
Rejected
HM Government Rejected
The Government does not accept the recommendation to devolve full responsibility for setting council tax to individual councils at this time. Council tax is already a localised tax – local authorities are responsible for setting tax levels, administering and collecting the tax, and have discretionary powers over discounts, premiums and support for working age people.
Source
Committee Housing, Communities and Local Government Committee
Inquiry The Funding and Sustainability of Local Government Finance
Report 2nd Report - The Funding and Sustainability of Local Government Finance 23 Jul 2025 HC 514
View on Parliament website
Addressee Bodies
Ministry of Housing, Communities and Local Government
Timeline
Recommendation age 0.9 yr
Report published 23 Jul 2025