Background Image
Table of Contents Table of Contents
Previous Page  19 / 27 Next Page
Information
Show Menu
Previous Page 19 / 27 Next Page
Page Background

19

3.3

Added revenue

Figure 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.

0

5

10

15

20

25

30

2015-16

2016-17

2017-18

2018-19

2019-20

£ billion

Current system Proposed system

© Centre for Economics and Business Research - Report Commissioned by Howard Cox for the FairHomeTax.UK Campaign