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It is economically inefficient particularly because of its banding system, reliance on considerably outdated property prices and the inconsistencies between it, and commercial property taxation.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. A young boy and girl entering the front door of a house, smiling. Their father carries a baby behind them

    The homes that children deserve: Housing policy to support families

    As the government seeks to develop a new child poverty strategy, it will need to grapple with housing – the single largest cost faced by families.
  2. A car park with a series of electric vehicle charging point parking spaces

    Powering up public support for electric vehicles

    Tackling greenhouse gas emissions will only work if public support for action remains strong. That means ensuring tangible improvements in people’s lives and heading off any brewing backlash.

  3. Assessing the economy

    Over the past few days and weeks, there has been lots of rather histrionic commentary about the UK’s economic situation as if the budget has created an economic disaster from which we’ll never recover.