Added revenueFigure 10
compares council tax revenue under the existing and reformed system. In 2015-16, the existing
system is expected to raise £24 billion, compared to £28.7 billion if the proposed reforms were to be
implemented. By 2019-20 the added revenue that would be generated as a result of the reforms would
be £25.6 billion.
Figure 10: Estimated council tax revenue, existing and proposed system
Source: VOA, OBR, Cebr analysis
The projected revenue figures assume same payment amounts for each band as are currently in place
with proportionally higher payment amounts for the three newly added bands. As payment amounts are
set by local government, the proposed reform does not advise a change which targets the amounts
specifically. Rather the change in the existing and addition of new bands reallocates homes between
bands and it is this shift that generates the added revenue.
Current system Proposed system
© Centre for Economics and Business Research - Report Commissioned by Howard Cox for the FairHomeTax.UK Campaign