Eight UK councils may raise taxes 5% due to care costs, sparking calls for tax system reform.

Eight Reform UK-led councils are considering up to a 5% council tax rise amid rising social care costs, reversing the party’s pledge to cut taxes. Labour MPs and the IFS are urging Chancellor Rachel Reeves to overhaul England’s outdated 1991-based council tax system in the upcoming Budget, citing regional inequality and a projected £4 billion funding gap. Experts warn that without modernising property valuations, tax increases or new levies could harm growth. The reforms are closely tied to a major local government reorganisation, with success depending on stable funding, trust, and coordinated policy.