A poor tax - Council tax in London: Time for reform

Article

Council tax is considered by many to be in the ‘too difficult to touch’ box when it comes to reform. Haunted by memories of the community charge, better known as the poll tax, which is widely perceived to have contributed to the fall of Margaret Thatcher, the majority of national politicians daren’t even speak of reform, let alone propose any change, for fear of the political consequences.

But leaving council tax unreformed is becoming ever more unsustainable. Local authorities across the country are increasingly cash strapped as a consequence of government cuts to their core grant funding and limits on their ability to raise funds through council tax and other sources. Moreover, the direction of public policy is towards greater devolution and allowing local politicians, accountable to their local electorates, to have a greater say – not just about what services should be prioritised, but how the funds for them should be raised.

Perhaps most significantly, however, is just how unfair the current system has become. Our research, focused on London, but with wider relevance for the whole system across England, demonstrates how council tax has become increasingly regressive with regard to property values – the cheaper your property, the more you are likely to pay as a proportion of your property value.

Related items

  1. A group of children sit around a table at primary school. A little boy smiles into the camera

    Breaking the cycle: A blueprint for special educational needs and disability (SEND) reform

    The education system is not working well enough for children with special educational needs and disabilities (SEND), their families, or the professionals delivering support.
  2. A group of young women laughing sitting around a cafe table

    Making space: Meeting the needs of young women and girls through Young Futures

    This is a critical moment for the government’s delivery of Young Futures Hubs, which can transform outcomes for young women and girls. 
  3. Doctor with patient for consultation, medical advice or procedure at clinic

    Building the foundations for transformation in the NHS

    The government has published a bold 10-year plan to transform England’s health system which, if fully delivered, will make the NHS of tomorrow look radically different from today’s service.