Momentum is Building for Council Tax Reform
The campaign for Council Tax reform has taken a significant step forward, with Andy Burnham and a growing group of Labour MPs speaking out against Britain's outdated and unfair system of local taxation.
The Mayor of Greater Manchester recently described Council Tax as "highly regressive" and questioned whether a system based on 1991 property valuations can still be justified in modern Britain. He is right.
For too long, Council Tax has penalised ordinary households while failing to reflect the true value of property wealth. Families in many northern communities are paying a higher share of their income in Council Tax than households living in some of the most valuable properties in the country.
Analysis highlighted by Fairer Share shows that residents in areas such as Makerfield can pay around twice as much Council Tax as households living in similar-sized homes in Westminster. That is not fairness. It is a tax system that has drifted further and further away from the principle that people should contribute according to their means.
The fact that senior Labour figures are now openly discussing reform demonstrates that this issue is moving firmly into the political mainstream.
We are particularly encouraged to see Labour MPs including Jonathan Hinder, Patrick Hurley, Chris Webb, Ian Byrne, Afzal Khan and Jonathan Brash lending their support to the case for change.
Jonathan Brash MP described Council Tax as a "broken" system and a "poverty tax that hits working people hardest while the wealthy get away lightly."
That reflects the experience of millions of households across the country.
Council Tax was introduced more than thirty years ago. Since then, the housing market has been transformed. Property values have risen dramatically, but not equally. Some parts of the country have seen extraordinary growth in property wealth while others have been left behind. Yet the tax system remains rooted in a valuation exercise carried out before the internet existed, before devolution and before many current homeowners had even bought their properties.
The result is a system that is increasingly difficult to defend.
The Labour Campaign for Council Tax Reform was established because we believe local taxation should be fair, transparent and fit for the twenty-first century.
We welcome the growing political consensus that reform is needed. However, recognising the problem is only the first step. The challenge now is turning that recognition into action.
That is why we are calling on Labour MPs, councillors, members and supporters to join the campaign, engage with the APPG on Council Tax Reform, and help build support for meaningful reform throughout the Labour Party and Parliament.
The case for change is becoming impossible to ignore.
Council Tax is based on a Britain that no longer exists.
It is time for a system that reflects the Britain of today.
If you agree, join the campaign today!