Andrew Dixon OBE, Founder and Chairman of Fairer Share

May’s local elections delivered a sobering message to Labour: voter discontent is real, growing, and increasingly dangerous to the party’s future. While Labour held most councils, the results revealed troubling undercurrents such as lower turnouts in traditional strongholds, protest votes for independents, and ominous gains for Reform UK in working-class areas. The warning is clear: without bold action on the issues that matter most to ordinary families, Labour risks losing the trust that secured its historic victory.

One issue stands out as both a symbol of systemic unfairness and an immediate opportunity for Labour to show it understands working families’ struggles: the broken Council Tax system that penalises the poor while protecting the wealthy.

A System Rigged Against the Red Wall

Council Tax, frozen in 1991 valuations, has become one of Britain’s most regressive taxes. The injustice is stark and personal. A family in a £230,000 home in Hartlepool pays over £2,000 annually in Council Tax – a crushing burden on modest incomes. Meanwhile, a household in an £8 million Westminster mansion pays proportionally far less, their effective rate a fraction of what working families bear.

This is not just unfair but also politically toxic. In May’s elections, we saw glimpses of what happens when voters feel the system works against them. Reform UK’s surprise council gains, independent candidates winning on local grievance platforms, and Labour’s uninspiring vote shares in traditional heartlands all point to the same conclusion: people are angry about being overlooked by a rigged system.

The Farage Factor Gets Real

May’s results showed Reform UK is not just a protest movement. It is becoming an electoral force. While their council victories were modest, their vote shares in Labour heartlands were anything but. In areas where traditional Labour voters feel abandoned, Reform UK offered simple messages about unfairness and neglect that resonated.

Nigel Farage does not need detailed policy solutions; he needs grievances to exploit. Council Tax is so obviously unfair that any populist can attack it credibly. If Labour continues to avoid reform, it hands Farage a ready-made weapon: “Labour talks about fairness but won’t even fix the tax system that hammers working families while protecting millionaires.”

A Solution That Delivers for Labour Voters

The remedy is overdue. Fairer Share has long advocated replacing Council Tax and Stamp Duty with a Proportional Property Tax (PPT): a fixed percentage of current property values that would be fairer, more transparent, and less regressive.

Our analysis shows 77% of households would pay less under PPT, with the biggest gains in Red Wall constituencies. For working families struggling with cost-of-living pressures, this would provide immediate, tangible relief. For Labour, it would demonstrate that the party remembers who it serves.

The political benefits are compelling:

  • Direct financial relief for the families who elected Labour
  • Regional rebalancing that corrects decades of southern bias
  • Moral authority to speak about fairness and inequality
  • Neutralising populist attacks by fixing an obviously broken system

Lessons from May: Act or Face the Consequences

May’s elections contained a crucial lesson: voters will punish parties that take them for granted, even if the alternative seems unpalatable. Independent candidates won seats by simply listening to local concerns. Reform UK gained ground by acknowledging working-class frustrations that mainstream parties ignored.

Labour cannot assume loyalty will last forever. The party’s Red Wall gains were built on promises of change and fairness. If those promises ring hollow, if Labour governs like just another party that protects the comfortable while asking the struggling to wait, voters will look elsewhere.

Council Tax reform offers Labour a chance to prove its commitment to working families is real, not just electoral rhetoric.

The Alternative to Painful Tax Hikes

While Angela Rayner explores wealth taxes and a freeze on income tax thresholds, Labour is missing an obvious alternative that would be both fairer and more popular. Rather than imposing additional taxes that risk further alienating voters, Council Tax reform offers a path to increased revenue while reducing bills for most families.

The contrast is stark: Rayner’s proposals target specific groups with additional levies, creating new grievances and political flashpoints. Proportional Property Tax, by contrast, would modernise the entire system, making it fairer while generating sustainable revenue growth tied to property values rather than political decisions.

This is not a fringe cause.  The All-Party Parliamentary Group on Council Tax Reform, which I proudly support, was launched by Jonathan Brash (MP for Hartlepool) and has built genuine cross-party momentum. The issue resonates across constituencies, from Red Wall families to young urban renters struggling with housing costs to suburban homeowners who see the system’s obvious unfairness.

Time Is Running Short

Council Tax reform embodies everything Labour claims to stand for: fairness, equality, and creating a system that works for ordinary people rather than protecting privilege. The current setup does the opposite. It entrenches inequality, deepens regional divides, and penalises those who can least afford it.

Every month Labour delays gives opponents more ammunition. Reform UK will continue exploiting grievances about unfairness and neglect. The Conservatives will eventually discover they can attack Labour from the left on this issue. Independent candidates will keep winning seats by promising to fix what mainstream parties ignore.

Labour built its majority on promises of change. The Red Wall trusted the party to remember where it came from and who it serves. Council Tax reform is not just policy but a test of whether those promises mean anything.

The May elections were a warning shot. Labour can heed that warning by taking bold action on the issues that matter most to working families, or it can continue business as usual and hope loyalty lasts forever.