Nearly two thirds (63%) of Brits think council tax is unfair, polling shows, with half (52%) worried about paying their bills next year.
Poll finds support for replacing council tax
Reducing or replacing council tax was the second most popular measure (34%) to ease pressure on household budgets when voters were asked to rank a range of options - behind cutting energy bills (49%). The idea was more popular than cutting income tax bills by raising the personal allowance (29%).
The poll of more than 2,000 people for Fairer Share found more than twice as many people said council tax was unfair (63%) compared to those who said it was fair (25%).
Burnham under pressure over property tax reform
Andy Burnham has previously argued that land is undertaxed and criticised the unfairness of the current system in England, which bases valuations on property values from 1991. The out-of-date measure can mean people in the North and the Midlands pay higher rates than people in the South where property prices have risen more quickly.
Mr Burnham ruled out immediate changes to council tax and stamp duty after becoming Prime Minister. Asked in July if he could scrap both taxes and replace them with a new alternative property tax, he said: "That won't be happening... It’s just not the case that we are bringing forward plans on that scale at this moment in time."
But the PM is facing calls to consider a property tax overhaul amid significant pressure on the public finances as Donald Trump's war with Iran threatens to erode the headroom left by former Chancellor Rachel Reeves.
Fairer Share proposes proportional property tax
Fairer Share has proposed replacing council tax and stamp duty with an annual proportional property tax (PPT), based on current property values and levied on owners, rather than tenants. The idea was backed by nearly half of respondents (47%) while one in seven (13%) opposed, and around a quarter (27%) neither supported or opposed it.
Andrew Dixon, founder of Fairer Share, said: “The Prime Minister was right not to rush into a major reform of property taxation without properly considering the consequences. But caution should not become an excuse for putting council tax back in the ‘too difficult’ box for another generation.
“This polling shows that the public knows the current system is unfair, wants government to address it and is open to serious reform. It also provides little evidence of the political backlash that is so often assumed when property taxation is discussed."
He called for an independent review into council tax and stamp duty, to consider the impact of alternatives on households and the housing market - and how a transition could be fairly managed.
MPs back fairer property tax
Jonathan Brash, Labour MP for Hartlepool and member of Labour MPs for Fairer Council Tax, said: “Council tax is one of the most regressive taxes in Britain. It hits hardest constituencies like mine, where people pay more despite often having less. That takes money out of working people’s pockets, away from our high streets and out of local economies that have been neglected for far too long.
“As this polling shows, if we want to rebuild our coalition and put more money into people’s pockets, breathe life back into our town centres and prove that Westminster can work for ordinary people again, replacing council tax with a fair proportional property tax is the place to start.”
Afzal Khan, Labour MP for Manchester Rusholme, said replacing council tax with a more progressive levy on property would make a huge difference to families on his patch.
“In my constituency over 90% of households would save an average of £500 every year, with only the broadest shoulders expected to pay that bit more," he said. "It’s no wonder people see it as a brilliant idea, and it is exactly what a government focused on the cost of living should consider.”
JL Partners conducted a representative online poll of 2,048 adults in Britain between August 1 and 4.
