Campaign Briefing
Labour Campaign for Council Tax Reform
A Fairer System for Modern Britain
Council Tax is one of the most unpopular and least defensible parts of Britain's tax system.
Introduced in 1993, it is still based on property valuations carried out in 1991. More than thirty years later, the housing market has changed dramatically, but the tax system has not kept pace.
As a result, households are paying tax based on a picture of Britain that no longer exists.
The Labour Campaign for Council Tax Reform believes it is time to replace this outdated system with one that is fairer, more transparent and better suited to modern Britain.
What's Wrong with Council Tax?
It is based on outdated property values
Council Tax bands in England and Scotland are still based on property values from 1991.
Since then, property prices have risen dramatically, but not evenly. Some areas have seen huge increases in property wealth while others have experienced much slower growth.
The result is a system that no longer reflects the true value of homes or the distribution of wealth across the country.
It is regressive
Council Tax does not rise proportionately with property values.
Someone living in a property worth several million pounds often pays only a few times more than someone living in a modest family home.
In practice, households in lower-value properties often pay a larger share of their income in Council Tax than those living in the most expensive homes.
This is difficult to justify and inconsistent with Labour values of fairness and ability to pay.
It puts pressure on working households
For many families, Council Tax is one of the largest household bills they face.
While wages and living standards have come under pressure, Council Tax bills have continued to rise.
Many households feel they are paying more while local services remain under strain.
It leaves councils struggling
Council Tax is increasingly being used to compensate for wider pressures on local government funding.
Councils are often forced to increase bills simply to maintain existing services.
This creates a cycle in which residents face higher costs while councils continue to struggle financially.
Neither councils nor residents are well served by the current system.
Why Reform Matters
A fairer system of local taxation could:
Better reflect modern property values.
Ensure contributions are more closely linked to wealth.
Reduce unfairness between households.
Create a more sustainable funding base for local government.
Strengthen public confidence in local taxation.
Support the long-term financial stability of local councils.
Council Tax reform is not simply a technical issue. It is about fairness, accountability and ensuring local government has a funding system fit for the twenty-first century.
Labour's Tradition
Labour has a proud history of supporting fair and progressive taxation.
The principle that people should contribute according to their means is central to our values.
Council Tax reform offers an opportunity to modernise local government finance while advancing Labour's commitment to fairness and social justice.
As the party of local government, Labour should be leading the debate on how councils are funded and how local taxation can be made fairer.
What the Campaign Wants
The Labour Campaign for Council Tax Reform is working to build support across the Labour movement, local government and Parliament.
We are calling on Labour representatives to:
Support the principle of Council Tax reform.
Engage with the campaign and its supporters.
Help build support within the Labour Party.
Support policy development on alternatives to the current system.
Promote a fairer and more sustainable approach to local government finance.
We are also encouraging Labour MPs to join the APPG on Council Tax Reform, chaired by Jonathan Brash MP.
How You Can Help
Join the Campaign
Become part of a growing movement calling for a fairer system of local taxation.
Email Your MP
Ask your MP to support the campaign and join the APPG on Council Tax Reform.
Email Your Councillors
Encourage Labour councillors to back reform and help build support within local government and the Labour Party.
Support Conference Motions
Help ensure Council Tax reform is debated and supported throughout Labour Party structures.
Spread the Word
Talk to fellow Labour members, friends, neighbours and colleagues about the need for Council Tax reform and encourage them to get involved.
Follow the Campaign
Keep up to date with campaign news, events, policy developments and opportunities to get involved.
Website:www.lc4ctr.org
Email:email@LC4CTR.com
Facebook:https://www.facebook.com/profile.php?id=61590383883947
Contact Us
For enquiries, campaign updates, media requests or to share responses from elected representatives, please contact:
Join the Campaign Today
Council Tax was designed for a Britain that no longer exists.
Together, we can build a fairer system of local government finance and secure meaningful Council Tax reform for communities across the country.