It's time to scrap the new poll tax on the poorest in society, writes Patrick O'Donnell
Council tax is increasing the overall financial burden on households, writes Patrick O'Donnell
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Low-income households have been saddled with unaffordable council tax bill, which some have referred to as the new "poll tax" nd its time to take action.
Both the Conservative Party and Labour have pledged to not raise income tax, VAT or National Insurance; but council tax is a levy that is in need of vital reform.
The tax has long been considered unfair because it is charged on on property valuations that are over three decades old.
This means that the levels of tax only partially reflect the actual value of properties today as house prices have risen substantially since then.
In 1991, the average house price in Britain came to £56,853. For the 12 months to January 2024, house prices in England settled at £299,000
The average Band D council tax set by councils in England for the 2024-25 tax year IS £2,171.
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Taxpayers are struggling with the unsustainable burden of council taxPAThis an increase of £106 or 5.1 per cent on the 2023-24 tax's amount of £2,065.
Britons are already having to contend with the highest tax burden in the country since World War II on top of this.
Local authorities and mismanagement from central Government are both responsible for this and an overhaul of council tax is needed.
Michael Gove, the Secretary of State for Levelling Up, Housing and Communities of the United Kingdom, previously reformed but the Government have failed to make this a reality.
Both Labour and the Conservatives have ruled out raising council tax but this does not mean change should be ruled out entirely.
The Fairer Share campaign is lobbying for stamp duty, council tax and the bedroom tax to be scrapped in lieu of proportional property tax.
This would charge a simple flat rate of 0.48 per cent on the current value of someone's property and will be paid by property owners, not tenants.
On top of this, payments of the levy would be deferred for a period of time if owners are not able to pay and there would be exemptions on second homes.
LATEST DEVELOPMENTS:
The tax burden has been raised significantly for households during the cost of living crisis GETTYEconomist Richard Murphy previously cited how those on lower incomes are penalised the most by the charge.
He said: “At the lower end, the charge behaves like a poll tax, with even the poorest property being expected to pay a fixed proportion of the sum owing by the mean property in the Council Tax bands."
“The result is that council tax features very heavily in the overall tax bills of the lowest paid in the country."
While the Tories may have dropped the ball on council tax reform, Labour will likely be in a position to get an overhaul of the levy rolling again.