Tory push to raise mansion council tax bands

Chancellor George Osborne came under pressure from Tory MPs again today to raise the highest rate of council tax.

Andrew Tyrie, chairman of the Commons treasury committee became the latest high-ranking Tory to support an increase.

The current system where all properties worth more than £320,000 in 1991 are taxed in the same band was “hard to justify on social and economic grounds,” he said.  

This system means that the owner of a luxury home in Mayfair can pay the same as a suburban home worth significantly less.

“My personal view is that the current system is regressive in the long-run and is increasingly difficult to justify,” Tyrie told media.

His remarks come after the Free Enterprise Group, a collection of right-wing Conservative MPs also suggested that the council tax bands be redrawn.

It is hoped that the measure would bridge an ongoing impasse with the Liberal Democrats who have publicly endorsed the concept of a “mansion tax,” an annual levy on homes worth more than £2m, a initiative Conservatives oppose.  

Osbore has previously suggested he is open to the council tax revamp, but was blocked from introducing into the budget back in March by David Cameron. With the additional pressure from Conservative MPs, however, it is now believed that Osborne could prioritise the issue during his autumn speech on 5^th December.