The Fairer Share Team

Mind the Mint: How a Small Hole Reveals Big Problems with Wealth Inequality

I recall wandering into our local WH Smiths to buy a packet of Polo mints for 4 pence in 1978 - a treat accessible to almost anyone. Fast forward to 2025, and the same packet costs around £1.75. While this might seem trivial, the story of Polo mints highlights a much deeper issue: the widening gap between incomes, the cost of living, and wealth inequality in the UK.

In 1978, the mean salary was £7,600 per year. At 4 pence per packet, it took less than 1 minute of work for the average worker to afford a pack of Polo mints. By 2025, with the mean salary rising to £37,430 annually, it now takes over 5 minutes of work to buy the same packet. This shift underscores how inflation and stagnating wages disproportionately impact low- and middle-income families. 

Why Have Polo Mints Become So Expensive?

Despite advancements in manufacturing efficiency, the price of everyday items has risen sharply due to inflation, rising raw material costs, and supply chain challenges. For low-income families, these price increases make essentials less affordable, compounding financial stress.

 The Bigger Picture: Inequality in Action

The rising cost of Polo mints is symbolic of broader economic challenges:

1. Stagnant Wage Growth: Real wages for most workers have not kept up with the cost of living, leaving less room for savings or discretionary spending.
2. Regressive Inflation Impact: Inflation hits everyday items harder, disproportionately affecting those on lower incomes while luxury goods remain relatively stable.
3. Wealth Concentration: The wealthiest 10% of households own nearly half of the country’s wealth, while the bottom 50% struggle to afford basic necessities. This imbalance limits social mobility and economic growth.
4. Unfair Property Taxation: In 1978, the mean household paid £70 annually in local Rates, equivalent to 2 days of work. By 2024, the mean Council Tax bill had risen to £1,966, requiring 14 days of work. This regressive system burdens those in lower-value properties while wealthier homeowners pay a lower effective tax rate.

 A Solution: Proportional Property Tax (PPT)

Fairer Share’s proposed Proportional Property Tax (PPT) offers a solution to these inequities. PPT would replace Council Tax and Stamp Duty with a system based on up-to-date property values. Key benefits include:

• Lower Bills for Millions: 76% of households would see a reduction in property tax bills, saving families an average of £550 annually.
• Fairness for All: Taxing properties proportionally ensures wealthier homeowners pay their fair share, reducing the burden on lower-value properties.
• Boosting Mobility: Abolishing Stamp Duty would make it easier for people to move, supporting economic flexibility.

While PPT will not make Polo mints any cheaper, it would leave more money in the pockets of low- and middle-income families, enabling them to enjoy small pleasures while easing financial pressure.

 The Social Consequences

Rising costs of everyday items, coupled with stagnant wages and regressive taxes, create a toxic cycle for low- and middle-income families. Over time, these micro-sacrifices erode quality of life and deepen economic divides. Meanwhile, the wealthiest continue to benefit from policies that favour asset accumulation, fostering resentment and social discontent.

 What Can Be Done?

Addressing these challenges requires bold action:

1. Fairer Tax Policies: Implement progressive reforms like PPT to ease the burden on ordinary families.
2. Targeted Inflation Support: Control the cost of essentials to protect vulnerable households.
3. Wealth Redistribution: Introduce fairer taxes on unearned income and inheritance to reduce inequality.
4. Strengthening Wages: Ensure earnings keep pace with living costs.

 The Time for Change Is Now

The story of Polo mints is a vivid reminder that while economic growth has advanced, its benefits have not been shared equitably. By adopting solutions like the Proportional Property Tax, the UK can take a significant step toward reducing inequality and supporting families. Now is the time to act, ensuring that everyone can enjoy the small but meaningful pleasures in life.

By Andrew Dixon OBE, Chairman of Fairer Share

by The Fairer Share Team

From Inequality to Inclusivity: Labour’s Vision for Fairer Property Taxes

Since taking office in July 2024, the Labour Government has faced mounting anticipation over how it will tackle the pressing challenges of economic inequality and regional disparities. Reforming the UK's outdated property tax system offers Labour a pivotal opportunity to deliver on its promise of building a fairer, more inclusive society.

Under the leadership of Prime Minister Keir Starmer, Labour has signalled its intent to prioritize "levelling up" across the country. Angela Rayner, now overseeing the levelling-up brief, has emphasized the need for bold policies to tackle regional inequality and create opportunity for all. Yet, despite these ambitions, Labour has so far distanced itself from wealth taxes, citing economic prudence and a desire to maintain broad-based appeal.

Harry Lambert, writing in the New Statesman, criticizes Labour's refusal to adopt tax reforms that shift the tax burden from labour to capital and wealth. These reforms could raise substantial revenue, potentially funding green energy initiatives or cutting income taxes for most people, while also addressing wealth inequality and boosting economic growth.

Josh Ryan-Collins, in The Guardian, criticizes Rachel Reeves' rejection of wealth taxes and her implication that lower taxes on the wealthy will lead to prosperity (trickle-down economics). The article argues that the UK's tax system incentivizes rentier capitalism, where capital gains are taxed less than income, resulting in a misallocation of capital that stifles growth and productivity. It contends that taxing wealth and capital gains while increasing public spending can help control inflation and promote progressive deflation, aligning with recommendations from organizations like the OECD, IMF, and the Institute for Fiscal Studies.

In the context of this ongoing debate surrounding taxation policies in the UK, if outright wealth taxes are ruled out, it is crucial to at least reform more regressive and punitive property taxes, notably council tax and stamp duty. Indeed, The Financial Times’ Editorial Board argues that council tax, stamp duty, and business rates hinder productivity and economic growth. The board proposes replacing council tax with an annual proportional property value tax based on updated valuations, gradually reducing stamp duty, and reforming business rates. These changes aim to address inequality and promote growth.

Property tax reform, as outlined by The FT, Lambert and Ryan-Collins, can play a pivotal role in rectifying the regressive nature of the current tax system. Council tax, based on outdated property values, places a disproportionate burden on households in less affluent regions, exacerbating regional inequality. By pledging to replace council tax with an annual proportional property value tax, the Labour Party would demonstrate its dedication to levelling the playing field and ensuring that taxation is fair and equitable.

Furthermore, property tax reform would underscore the Labour Party's commitment to fiscal responsibility. While advocating for tax reforms, Labour acknowledges the importance of maintaining local government revenue. By carefully phasing in changes, introducing caps and reliefs for vulnerable households, and deferring payments until property sale or death, the party can strike a balance between fairness and financial stability. This balanced approach resonates with voters who value responsible economic management.

Importantly, property tax reform is a policy that can capture the attention and support of a broad spectrum of voters. Proportional property taxes are commonplace in many countries indicating their feasibility and acceptance among the public. The proposal to cut taxes for three in four people while raising necessary revenue can be an attractive proposition for voters and help deliver a persuasive campaign platform.

In conclusion, while wealth taxes may be off the table, reforming property taxes—specifically council tax and stamp duty—presents a clear opportunity for the Labour Party to demonstrate its commitment to addressing regional inequality, ensuring fiscal responsibility, and appealing to voters across the political spectrum. By championing policies that promote economic fairness and growth, Labour can distinguish itself and present a bold, compelling vision for a more equitable tax system and a fairer UK society.

By Andrew Dixon OBE, Chairman of Fairer Share

by The Fairer Share Team

Fix Council Tax or Face Farage: Labour Must Act to Protect the Red Wall

Since taking office, Labour has had the chance to show its commitment to fairness and change. But one question looms large: how will Labour safeguard the Red Wall constituencies that helped secure its majority? While national debates over the NHS, energy, and the economy dominate headlines, local issues often hold the key to winning voters’ trust. One such issue is the broken and deeply unfair Council Tax system. Reforming it presents both a pressing necessity and a significant opportunity for Labour.

 A Broken System That Penalises the Poor

Council Tax, introduced as a replacement for the Poll Tax in 1993, is based on property valuations frozen three decades ago. The result? A system that disproportionately burdens lower-income households—especially in Labour heartlands like the Red Wall—while offering generous breaks to the wealthiest.

Take this example: a family living in a £230,000 home in Hartlepool pays over £2,000 annually in Council Tax. Meanwhile, a household in a property worth £8 million in Westminster pays significantly less in Council Tax, highlighting a stark disparity. This injustice is glaring, perpetuating regional inequality and penalising working-class families.

Despite this, successive governments have dodged meaningful reform, fearful of upsetting affluent voters in Tory strongholds. Labour cannot afford such timidity. It must lead the charge, offering a bold and modernised vision for a fairer system.

 A Growing Threat from Nigel Farage and Reform UK

Labour’s opportunity to address Council Tax reform comes with a warning: inaction could cost dearly. Nigel Farage and Reform UK are circling, capitalising on immigration concerns and deep-seated economic frustrations in Labour’s traditional heartlands. Farage, with his trademark populist rhetoric, is positioning himself as the voice of the “forgotten working class.”

The Council Tax system is fertile ground for this narrative. Farage does not need detailed solutions; he simply needs to highlight Labour’s perceived inaction. By failing to address the issue, Labour risks ceding ground to a party that thrives on disillusionment and anger. Reform UK may lack substance, but their ability to capture attention cannot be underestimated. Labour must act decisively to neutralise this threat and take ownership of the issue.

 The Case for Proportional Property Tax

The solution is straightforward and long overdue. The Fairer Share campaign has long advocated replacing Council Tax and Stamp Duty with a Proportional Property Tax (PPT). Under this model, households would pay a fixed percentage of their property’s current market value. The tax would be fairer, more transparent, and less regressive.

The benefits are compelling. Fairer Share’s analysis shows that 77% of households would pay less under PPT, with the biggest gains seen in Red Wall constituencies. For working-class families struggling with the cost-of-living crisis, this change would deliver immediate financial relief. It would also address long-standing regional inequalities by ensuring wealthier households contribute a fairer share.

By adopting PPT, Labour could achieve three critical goals:

1. Support struggling families by reducing their tax burden.
2. Combat inequality by targeting wealthier homeowners.
3. Modernise the tax system to reflect today’s housing market. 

Why Labour Must Lead

In towns like Hartlepool and across the North, voters feel abandoned by a system that stacks the odds against them. Council Tax reform is not just about numbers; it is about values. Will Labour stand for fairness and equality? Or will it shy away, leaving others to dominate the conversation?

Critics may argue that reforming Council Tax is politically risky, but the greater risk lies in doing nothing. If Labour hesitates, both the Conservatives and Reform UK could seize the initiative, framing themselves as champions of fairness while Labour appears complacent.

The All-Party Parliamentary Group (APPG) on Council Tax Reform, which I proudly support, has worked to expose the system’s deep flaws and build cross-party momentum for change. This is no fringe issue. It resonates with voters across the political spectrum—from Red Wall families to young urban renters and suburban homeowners. Labour must harness this momentum.

 The Political and Moral Imperative

Reforming Council Tax is not just smart politics—it is a moral imperative. The current system penalises those who can least afford it while shielding the wealthiest. It entrenches inequality and deepens regional divides.

Labour was founded on principles of fairness, justice, and creating a better deal for ordinary people. Council Tax reform offers a chance to live up to those ideals. By showing courage and conviction, Labour can lead the way on one of the most pressing social justice issues of our time.

 Time Is Running Out

Labour must act. Every delay gives Farage and Reform UK more room to exploit grievances and divide voters. If Labour takes bold action, it can neutralise these threats while delivering tangible benefits to millions of working families.

The Red Wall was built on the hopes and aspirations of working-class voters. If Labour is to hold it, we must champion their dreams for a fairer and more equitable society. Reforming Council Tax is not just an opportunity to protect Labour seats; it is a chance to show the nation that they are serious about fixing the systems that hold people back. The time for bold action is now.

By Andrew Dixon OBE, Chairman of Fairer Share

by The Fairer Share Team

Struggling with Council Tax? Here’s What You Can Do

With council tax bills set to rise again in 2025, many households are feeling the strain. At a time when the cost of living is already high, an increase in council tax can push family budgets to the limit. But if you’re struggling to keep up with your payments, there are steps you can take to reduce your burden. Here’s what you need to know.

Check If You’re Eligible for a Discount or Exemption  

Many people don’t realise that they could be entitled to a discount on their council tax bill. Local councils offer reductions for a variety of reasons, including:

• Single person discount - If you live alone, you can get 25% off your bill.
• Student exemption - Full-time students are exempt from council tax entirely.
• Low-income households - Council Tax Reduction (CTR) schemes vary by local authority, but if you're on a low income or receiving benefits, you may qualify for a discount.
• Severe mental impairment (SMI) discount - If you or someone in your home has been medically diagnosed with an SMI (such as dementia), you may be eligible for a discount or exemption.
• Carers and disabled persons - Some councils offer discounts for those providing care or living with a disabled person in a property adapted for their needs.

How to Apply  

Check your local council’s website to find out what discounts and exemptions are available in your area. You’ll usually need to complete an application and provide supporting documents.

Appeal Your Council Tax Band

Did you know that many homes in England are still in the wrong council tax band? This dates back to the rushed property valuations in 1991, which have never been properly updated. If your home is in a higher band than it should be, you could be overpaying.

How to Challenge Your Band  

• Check your band - Visit the Valuation Office Agency at www.gov.uk/council-tax-bands website and compare your band with similar properties in your area.
• Gather evidence - If similar homes in your street are in a lower band, you may have a case for an appeal.
• Submit a challenge - You can formally challenge your band through the VOA, but be aware that your band could go up as well as down.

Set Up a Payment Plan or Apply for a Hardship Fund

If you're struggling to pay your bill, don't ignore it. Councils have the power to take enforcement action, including sending bailiffs. However, most councils will work with you if you contact them early.

Options Available  

• Spread your payments – Instead of paying over 10 months, you can request to spread payments over 12 months to reduce your monthly cost.
• Apply for a hardship fund – Some councils have discretionary hardship funds for people in severe financial difficulty.
• Negotiate a repayment plan – If you've fallen behind, speak to your council to agree on a manageable repayment plan.

Support our Campaign for a Fairer System  

Council tax is outdated, unfair, and based on property values from over 30 years ago. The highest earners often pay a smaller proportion of their property’s value than those on lower incomes. Fairer Share is campaigning for a Proportional Property Tax, which would replace council tax with a fairer system based on up-to-date property values.

What You Can Do

• Sign the petition – Show your support for council tax reform.
• Write to your MP – Let them know that the current system isn’t working and demand change.
• Spread the word - Share information about the Proportional Property Tax with friends and family.

Get involved with the Fairer Share campaign here.

by The Fairer Share Team

Andrew Dixon | A Unified Call to Reform the Country's Property Taxes and Build a Fairer System

Last week, Radix UK featured an article by Andrew Dixon, Founder of Fairer Share, in which he examined the pressing need for reform in the UK’s property tax system.

In this article, Andrew underscores the system’s fundamental flaws and inherent unfairness, emphasising how the outdated tax structure disproportionately burdens lower-income households and creates regional inequalities. Andrew argues that basing property taxes on actual property values, rather than outdated valuations, could lead to a more equitable and progressive approach. Such a shift, he suggests, would not only align with contemporary economic realities but also support sustainable growth and fairer opportunities for homeowners across the country.

You can read the article in full here.

by The Fairer Share Team

The Unfair Hole in Next Week's Budget

The Financial Times article, “The Unfair Hole in Next Week’s UK Budget,” critiques the government’s reluctance to address Council Tax reform, despite mounting calls for an overhaul. As the Budget announcement nears, meaningful changes to Council Tax - a system untouched since property values were last set in 1991 - appear unlikely. Over the past 30 years, substantial shifts in house prices mean many homeowners are paying taxes that bear little relation to their property's current value, underscoring the system's outdated and inequitable nature.

Tim Leunig of the think tank Onward proposes a “local proportional property tax” as an alternative, taxing properties up to £500,000 at a local level and using higher tax brackets to replace Stamp Duty on more valuable properties. This approach seeks to create a fairer, more progressive tax structure. Additionally, Leunig suggests reducing grants to wealthier councils to ease the tax burden on properties with lower values. Fairer Share, a group advocating for equitable taxation, has funded this research and supports Leunig’s model as a pathway to a fairer system.

The article highlights why politicians hesitate to tackle Council Tax reform. Many residents are unclear about what Council Tax actually funds, and shifting the system risks backlash from those whose bills might increase. Reform would also necessitate rethinking central government’s funding of local councils—a task many prefer to avoid. With the Budget approaching, the article argues that Council Tax reform remains a “black hole” in policy, largely ignored despite expert calls for change. Although the Budget may include tax tweaks, meaningful Council Tax reform seems unlikely.

Read the article in full here.

by The Fairer Share Team

Former Sunak adviser urges Labour to introduce wealth tax on housing

In recent years, the push to reform local government finance has gained significant traction. A growing consensus among parliamentarians, think tanks, economists, and campaigners underscores the urgent need to replace the regressive Council Tax and the anti-aspirational Stamp Duty with a more equitable Proportional Property Tax. Tim Leunig has made three key recommendations: implementing a clear distinction between national and local funding, introducing a minimum payment to safeguard essential local services, and advocating for a more efficient property valuation process. These innovative proposals deserve serious consideration from the new Government, and we strongly urge them to give this paper the attention it merits.

You can read the full article featured in The Guardian here.

by The Fairer Share Team