John Healey has decided not to lower the starting point for the planned high-value council tax charge from £2 million to £1.5 million.
The decision follows weeks of discussion about expanding the number of properties covered by the measure as the Chancellor prepares his first Budget on 28 October.
The charge was announced in the November 2025 Budget and is due to take effect in England from April 2028. It starts at £2,500 a year for homes valued between £2 million and £2.5 million.
The annual charge rises through higher valuation bands, reaching £7,500 for properties worth £5 million or more. The thresholds are based on 2026 property values.
Healey’s decision leaves the previously announced £2 million entry point in place. It does not abolish the charge or change its planned implementation date.
The Budget has not yet been delivered, and other tax and spending decisions remain subject to final Treasury decisions and parliamentary scrutiny.
