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It is economically inefficient particularly because of its banding system, reliance on considerably outdated property prices and the inconsistencies between it, and commercial property taxation.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. Train and cars on a motorway with London skyline in background

    Planes, trains and automobiles: How green transport can drive manufacturing growth in the UK

    Transport is essential to our lives. Unfortunately, it is currently also the largest source of UK domestic carbon emissions. 

  2. Regional economies: The role of industrial strategy as a pathway to greener growth

    Regions like the North should have a key role to play in the development of a green industrial strategy.
  3. A mother and child walking in a field with hills in the distance

    Achieving the 2030 child poverty target: The distance left to travel

    On 27 March, the Scottish government will announce whether Scotland’s 2023 child poverty target – no more than 18 per cent of children in poverty – was achieved.