Council Tax Campaign

The Campaign For A Fairer Council Tax

Council tax is a property tax which is levied according to the value of homes, and (in part) the size of households. It is used to raise about a quarter of local government revenue in Great Britain. It was introduced in April 1993 and in England alone it will raise more than £21 billion in a financial year.

Why council tax?

Council tax exists largely as a result of history and political expediency. It is a property tax like the old rates system, and it also retains some elements of the poll tax. The amount of tax paid is primarily linked to the value of each home, but the size of household is also taken into account through a 25% discount for one-adult families.

It would be quite possible to replace council tax with some other form of local taxation, such as a local sales or income tax. While there are arguments in favour of many of the ideas people have put forward, it is likely that council tax will remain in place for the foreseeable future. This is because council tax is not only the status quo, it is also well understood by the public, and causes minimal political disquiet (unlike the poll tax which it succeeded). There is therefore no pressing political need for it to be abolished.

On the assumption that council tax is here to stay for the foreseeable future, it is very important that serious attention is paid to getting the system right, both for tax payers and local authorities.