Decades of Avoidance Finally Ending

After more than 30 years of political avoidance, the debate is finally happening: the Chancellor has acknowledged that the current Council Tax and Stamp Duty system is outdated and unfair. For too long, modest homes have been paying more than their fair share while multimillion-pound properties remain under-taxed. That must change.

Reeves is exploring replacing Stamp Duty with a property tax on owner-occupied homes sold for over £500,000 and considering introducing a local property tax to replace the outdated Council Tax, which still relies on 1990s property values. This is tied to the aim of providing fairer, more sustainable funding for local authorities.

Fairer Share’s Role in Shaping the Debate

This is exactly what Fairer Share has championed from the very beginning. And today, we are proud to have played a central role in making this conversation possible by providing both the funding and the robust data that underpinned Onward’s analysis, now referenced at the heart of the national debate.

The Case for a Proportional Property Tax

While tweaks to the current system are being discussed, the answer is clear: the Proportional Property Tax (PPT). PPT would replace Council Tax and Stamp Duty in one go, creating a simple, fair, and sustainable tax system based on real property values. No more outdated 1991 valuations. No more unfair burdens on people in modest homes while the wealthiest get away with paying less than they should.

Backed by Public Support

Our polling shows strong support across the political spectrum. In fact, households will make an average saving of £556 each year under PPT. At the same time, councils would receive stable and sufficient funding to deliver the local services we all rely on, from schools and libraries to social care and community spaces.

Time for Labour to Deliver

This reform is long overdue. It’s a no brainer for Labour to adopt. By delivering a Proportional Property Tax, the Government can finally put fairness at the heart of our property tax system, ensuring people contribute based on what their homes are really worth, not what they were worth in 1991.

Looking Ahead

Fairer Share looks forward to working closely with the Labour Government to deliver this much-needed change and create a modern property tax system that reflects fairness, funds services sustainably, and restores trust in how we pay for our communities.