London Boroughs: Financial Support

Lord Campbell-Savours Excerpts

Monday 3rd November 2025 Lords Chamber

[The Lord Speaker (Lord McFall of Alcluith)]

My Lords, I call the noble Lord, Lord Campbell-Savours, who is participating remotely.

[Lord Campbell-Savours (Lab) [V]]

My Lords, does Westminster City Council in particular need additional support when a band H house worth £60 million in the borough carries a council tax of £2,100 a year, while a similar band H house worth £300,000 in Cumbria, in my former constituency, carries a tax of £4,600 a year—double Westminster’s? Worse, how can a band C local authority house in Cumbria’s Keswick pay more in council tax than that same £60 million-worth house in Mayfair? The system is discredited. We need new higher tax bandings and a fairer distribution of the burden.

[Baroness Taylor of Stevenage (Lab)]

My noble friend has illustrated why we are setting about this fair funding review. It is for local authorities to decide at what rate they set their council tax. Of course, it has to reflect the service needs of each area, taking account of other sources of income and historic council tax decisions made over the decades. We want to make sure that we make this a fair funding review, which is why we have been consulting on it and looking at the formulas to make sure that they operate effectively. I am sure my noble friend would not expect me to comment on the new higher council tax bands in advance of the Chancellor’s next fiscal event—