The Executive Councillor for Finance, Imogen Shepherd-DuBey, noted the formal response to a government consultation on a High Value Council Tax Surcharge. This decision was made following a review of the potential impacts of the proposed surcharge on the council's future financial position.

High Value Council Tax Surcharge Consultation

The Executive Councillor for Finance, Imogen Shepherd-DuBey, noted the council's formal response to a consultation by the Ministry of Housing, Communities and Local Government (MHCLG) regarding a proposed High Value Council Tax Surcharge (HVCTS). The consultation, which ran from April 2028, aimed to introduce an additional charge on residential properties valued at £2 million and above.

Wokingham Borough Council's response, detailed in the Public reports pack 15th-Jul-2026 12.30 Executive - Individual Member Decisions.pdf, raised significant concerns about the proposal that all monies raised through this surcharge would be directed to central government, rather than being made available to support local services and residents. The council stressed the importance of simplicity in administration, alignment with existing Council Tax arrangements, appropriate exemptions, and full funding for implementation costs.

Key points raised in the council's response included:

• Liability and Administration: The council argued that liability for the HVCTS should remain with the person liable for Council Tax, rather than the legal owner, to ensure a more streamlined administration and greater clarity for residents. They highlighted that requiring local authorities to identify legal ownership, investigate trusts, and establish leasehold interests would incur additional staffing requirements, increase dispute resolution activity, and pose higher collection risks.
• Deferral Schemes: Wokingham expressed significant concerns about the proposed national deferral scheme, noting that while recognising some households may be asset-rich but income-constrained, deferral arrangements create substantial administrative complexity. The council suggested that broader support mechanisms should be explored instead of increasing debt secured against residential properties.
• Exemptions and Discounts: The council broadly supported exemptions for properties used by registered social landlords, care providers, charities, and those offering refuge from domestic abuse, arguing that additional taxation on these organisations would inevitably lead to increased pressure elsewhere within the public sector.
• Collection and Enforcement: While supporting the retention of collection and recovery powers consistent with existing Council Tax legislation, the response emphasised the need for access to wider government-held datasets and stronger information-sharing arrangements, as collection could be significantly more challenging if the liable party differs from the current Council Tax payer.
• Valuation and Appeals: The council voiced concerns that the proposed division of responsibilities between the Valuation Office (for valuation) and local authorities (for billing) could lead to duplication, increased appeals, customer confusion, and additional administration costs.
• Financial and Operational Implications: The council estimated that implementation would require significant investment in staffing, customer services, debt recovery, legal support, IT systems, data management, and appeals administration. They indicated that implementation costs could be approximately £500,000 in one-off costs, with £350,000 in annual ongoing costs, and reiterated the importance of full reimbursement from the government for all new burdens imposed on local authorities.

The council's response also highlighted that the proposed surcharge could disproportionately impact elderly individuals who are asset rich and cash poor, as well as other financially vulnerable residents. They reiterated that it is fundamentally wrong and unfair that funds raised locally are not ringfenced for the relevant local authority to support local services and those paying the new levy.

The decision to note the formal response was made by the Executive Councillor for Finance, Imogen Shepherd-DuBey, on 15 July 2026. The meeting was attended by Luciane Bowker, Democratic and Electoral Services Specialist, and Graham Caddle, Service Director – Finance. The full details of the council's response can be found in Appendix A of the Public reports pack 15th-Jul-2026 12.30 Executive - Individual Member Decisions.pdf. The final decision record is available in the Decisions 15th-Jul-2026 12.30 Executive - Individual Member Decisions.pdf.