When discussing tax reform, particularly a shift to Proportional Property Tax (PPT), misinformation can spread quickly. Some people assume it’s just another way to raise taxes, while others fear it could hurt homeowners. In reality, PPT is designed to be fairer, simpler, and more affordable than Council Tax.
Let’s break down some of the most common myths and set the record straight.
Myth 1: “PPT is Just Another Tax Increase”
Reality: PPT isn’t about raising more tax – it’s about taxing fairly. Under the current system, Council Tax is based on property valuations from 1991 – more than 30 years out of date. That means millions of people in modest homes are paying far more than their fair share, while those in high-value properties often pay less as a proportion of their home’s true value.
The PPT would replace Council Tax and Stamp Duty with a simple, transparent tax: 0.48% of a property’s current value. Nothing more, nothing less. It doesn’t raise more money overall – it’s revenue neutral – but it redistributes the burden more fairly across the country.
Under this fairer model, 77% of households would pay less than they do now, with average annual savings of £556. Families in lower and mid-value homes would benefit the most – while those in the highest-value properties would contribute more in line with the true value of their assets.
This isn’t about punishing success. It’s about modernising a broken system so that everyone pays their fair share based on what their property is actually worth today – not what it was worth in 1991.
Myth 2: “Homeowners Will Be Forced to Sell Their Homes”
Reality: Some worry that switching to a proportional system could push homeowners out of their properties. In fact, PPT is designed to reduce unfair financial pressure, not increase it.
Many pensioners and families currently struggle with Council Tax bills that are disproportionately high for their home’s value. PPT would create a fairer system where those in modest homes pay less, while wealthy homeowners pay their fair share.
Plus, there could be safeguards such as deferral schemes for pensioners and gradual phase-in periods to ensure no one faces sudden financial hardship.
Myth 3: “Landlords Will Just Pass the Costs Onto Renters”
Reality: While some landlords may pass on part of the cost, most renters live in lower-value properties – meaning they’ll still benefit overall.
Under the current system, renters are hit hard. Although Council Tax is technically a property tax, it’s tenants – not landlords – who pay it. This often means people renting modest homes are charged a higher effective tax rate than those living in much more expensive properties.
With a PPT, the responsibility for paying the tax would shift to the property owner – the landlord – not the tenant. While some of this cost may be reflected in rent over time, most rental properties are in lower-value bands. That means the overall tax bill on these properties would go down under PPT – and with it, the pressure to raise rents.
This shift would create a fairer, more transparent system. Landlords would pay tax based on what their property is actually worth, and renters would no longer carry the disproportionate burden of a broken Council Tax system.
Myth 4: “Council Tax Reform Isn’t a Priority Right Now”**
Reality: The cost-of-living crisis means people are struggling more than ever. Council Tax bills are rising across the country, but because the system is so outdated, the increases don’t affect everyone fairly.
Switching to PPT would immediately reduce tax bills for millions of households, providing much-needed financial relief without cutting local services.
Myth 5: “The Current System Works Fine”
Reality: The Council Tax system is fundamentally broken. A home in the North of England worth £100,000 might pay the same (or more) in tax than a London townhouse worth £1 million. That’s because Council Tax bands haven’t been updated since 1991, meaning people in cheaper homes are stuck overpaying while the wealthiest homeowners contribute far less than they should.
PPT would eliminate this outdated, unfair system and introduce a simpler, more transparent approach, where what you pay is directly tied to your home’s real value.
PPT isn’t about increasing taxes, it’s about fixing an unfair system that punishes ordinary families. By replacing Council Tax with a straightforward percentage-based tax, we can make homeownership and renting more affordable, fairer, and fit for the 21st century.
If you believe in a fairer tax system, support the campaign today! Sign up, spread the word, and help bring real change to the way we fund local services.