Councils have warned that the Government’s proposed surcharge on homes worth more than £2 million could add costs, blur accountability and potentially leave local authorities financially worse off. The Local Government Association says councils would have to administer a national tax without controlling its rates or rules, while residents might wrongly blame local councillors for it.

The Government expects the measure, announced in Rachel Reeves’s autumn Budget, to raise about £430 million a year for public services and argues it addresses unfairness in council tax. Under current proposals, councils would collect the money but send it to central government; the LGA wants full reimbursement of staffing, legal and technology costs, clearer billing information, and consideration of national administration instead.