A poor tax: Reforming council tax in London - Final report

Article

The current council tax system in London is unfair. The tax could be a sustainable means of funding local government services while also functioning as a progressive tax on property wealth. However, at present it is highly regressive in relation to property value as well as representing an unduly large burden in terms of income for poorer Londoners.

It is economically inefficient particularly because of its banding system, reliance on considerably outdated property prices and the inconsistencies between it, and commercial property taxation. Furthermore, it is increasingly unsustainable as a source of local government finance, a trend which is only set to continue.

In this paper, we set out the case for change of the council tax system in London. We outline some of the views of those who live in the capital and pay council tax in the system as it is, and how they would like to see it change. We also set out some key lessons from abroad on how our system compares.

Related items

  1. Fixing the foundations: The case for investing in children's health

    For decades, governments of all stripes have promised to give children a better, healthier start to life. But despite this – and some notable policy successes – the UK continues to fall short on childhood health outcomes. 

  2. Dr Parth Patel on BBC Politics Live discussing net zero, GDP, taxes, prisons and the EU

  3. Wide angle view directly up in the skyline of the financial district in central London

    Fair play: How competition policy can drive growth

    The UK’s competition framework — and its regulator, the Competition and Markets Authority — has struggled to prevent rising market concentration and stagnant productivity.