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Originally Posted by ianathuth
What I don't understand about that story is the fact that property prices vary so much throughout the country. Each council has a budget which it has to raise the finance for by means of the council tax. If you live in a very poor area where all the houses are worth less than £130k then the article suggests that all council tax payers will pay less. Who makes up the shortfall to the budget if this is the case? Likewise if all houses were worth more than £620k everyone would pay more and therefore a huge surplus would accrue. Who gets that surplus? Am I missing something and are they setting national budgets for local authorities to draw from?
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You have stated my initial thoughts on reading the article exactly.
Also, if a house has edged up to £320K, they are giving an annual bill figure of 3 grand - £60 a week - £1.50 per hour if you work a 40 hour week, just to pay the council tax, out of already taxed income!
As others have said, thats not a particularly extravagant house in many areas, given the way prices have gone.