Frequently Asked Questions
What is the Labour Campaign for Council Tax Reform?
The Labour Campaign for Council Tax Reform exists to put Council Tax reform firmly on Labour’s political agenda.
We support a full review of Council Tax and local government finance, and we work with Labour members, councillors, MPs, trade unions, researchers and campaign groups to build support for reform.
Our campaign is not committed to a single replacement system. Our aim is to ensure Labour begins a serious conversation about creating a fairer system of local taxation.
Why does Council Tax need reform?
Council Tax is based on property values from 1991.
More than three decades later, property prices, patterns of wealth and regional inequalities have changed dramatically, but the system has largely remained the same.
As a result, households in lower-value areas often pay a higher proportion of their income and property value than households in some of the most expensive parts of the country.
Many people believe the system is outdated, unfair and increasingly difficult to justify.
What do you mean when you say Council Tax is regressive?
A regressive tax is one that takes a larger proportion of income or wealth from those with less than from those with more.
Under the current system, a modest home in a deprived community can face a much higher effective tax rate than a very high-value property elsewhere.
This means Council Tax often places the greatest burden on communities least able to afford it.
Is Council Tax really still based on 1991 property values?
Yes.
Council Tax bands in England and Scotland are still based on property valuations carried out in 1991.
No government has undertaken a full national revaluation since.
Are you campaigning for higher taxes?
No.
We are campaigning for a fairer system.
The question is not simply how much tax is raised, but how it is raised and who pays it.
Many reform proposals would see the majority of households pay less while ensuring that property wealth is reflected more fairly.
What system do you want to replace Council Tax with?
The campaign does not endorse a single replacement.
There are several alternatives that deserve serious consideration, including:
• Proportional Property Tax
• Land Value Taxation
• Local Income Taxes
• Wider reforms to local government finance
Our focus is on ensuring Labour properly examines the options rather than defending the status quo.
Would reform create winners and losers?
Any major tax reform will change who pays what.
However, most proposals seek to reduce the burden on lower-income households and ensure that those with the broadest shoulders contribute proportionately more.
The details should be determined through a full review and public debate.
What about pensioners living in high-value homes?
Any responsible reform must take account of people who are asset-rich but income-poor.
Many proposed systems include protections, exemptions, deferrals or transitional arrangements to ensure that nobody is forced from their home because of tax reform.
Why is this important for local government?
Council Tax now funds a significant share of local government spending.
At the same time, councils face growing pressures from social care, SEND provision, homelessness and other statutory responsibilities.
Many councils are being forced to raise Council Tax while reducing visible local services.
This damages trust in local government and weakens confidence in local democracy.
Is this a Labour Party campaign?
No.
The Labour Campaign for Council Tax Reform is an independent campaign that seeks to influence Labour Party policy and encourage debate across the Labour movement.
How can I get involved?
You can:
• Ask your CLP to discuss Council Tax reform
• Support our Conference Motion
• Invite a speaker to your local Labour Party meeting
• Contact your MP
• Share campaign materials
Council Tax reform will only happen if people are prepared to make the case for change.
How can my CLP support the campaign?
Your CLP can:
• Debate Council Tax reform locally
• Submit motions to Labour Conference
• Invite campaign speakers
• Host policy discussions
• Engage with MPs, councillors and members on the issue
If your CLP would like support, please get in touch.
I represent an organisation working on local taxation or local government reform. Can we work together?
Yes.
We welcome engagement from organisations, researchers, think tanks, trade unions, campaign groups and elected representatives interested in reform.
While different organisations may advocate different solutions, we believe there is value in working together to ensure the need for reform remains on Labour’s agenda.