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It is economically inefficient particularly because of its banding system, reliance on considerably outdated property prices and the inconsistencies between it, and commercial property taxation.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. “I feel quite unsettled and unsafe”: Young people, belonging, and the broken promise of childhood

    Young people in England feel less secure, supported and connected than a decade ago. Based on nearly 200 conversations, this blog explores why childhood feels more stressful and less joyful.
  2. A photograph from below of the grand Manchester town hall building on a sunny day against a blue sky

    On home ground: The future of devolution

    Andy Burnham has pledged to deliver “the biggest rebalancing of power the country has ever seen”. The key task for the new government is putting this into action.
  3. A photo of police officer and a community support officer walking down a quiet street in Kent

    The legitimacy trap

    Why a more active state needs better statecraft.