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MPs Spared from Second Homes Council Tax Surcharge as Taxpayer Picks Up Bill

by Will Jones
2 April 2025 7:30 PM

MPs will be spared from a new council tax premium on second homes that they voted to allow, leaving taxpayers on the hook for five-figure bills. The Telegraph has the story.

Town halls will be able to charge 100% council tax on additional properties from this month, a move that has left homeowners facing crippling bills, including on inherited homes.

However, the allowance for MPs, funded by the taxpayer, will rise to cover the surcharge, allowing them to pass the whole bill on to the public.

In an email leaked to the Telegraph, the Independent Parliamentary Standards Authority (IPSA) told MPs that their accommodation budget had been “uplifted by a significant amount” to mitigate the additional charge.

It comes as households across the country have received bills as high as £10,000.

The email said: “Local councils have recently been given the power to charge council tax for secondary homes, and many are doing so. MPs have not been included on the list of exemptions.

“The accommodation budget has been uplifted by a significant amount for the 2025-26 financial year which will mitigate the additional charge, but IPSA would be happy to discuss contingency if this cannot be covered by the new increased budget.”

Over two thirds of authorities in England have introduced the levy in an attempt to plug budget shortfalls.

Telegraph Money has heard from dozens of readers who have been hit with crippling bills and feel they are being “extorted” by councils. …

John O’Connell, of campaign group the Taxpayers’ Alliance, said: “This will only pour salt in the wounds of those homeowners now facing 100% premiums just for having the temerity to own a second home.

“It is beyond contempt that many of the same MPs who voted through the policy to allow these additional charges will now be completely shielded from the financial impact of it.”

Earlier this year, it was revealed that Rachel Reeves had charged taxpayers £10,800 for her second home council tax bill over the past five years.

The Chancellor was one of 41 Labour Ministers to claim back the expense, including Education Secretary, Bridget Phillipson, and Business Secretary, Jonathan Reynolds.

Worth reading in full.

Tags: CorruptionCouncil taxHousingHypocrisyMPsParliament

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