We welcome growing political support for urgent reform of Council Tax, following coverage in The I Newspaper highlighting Andy Burnham’s backing for a fairer property tax system thanks to our work.

The article also included supportive comments from Jonathan Hinder MP and Jonathan Brash MP, adding further weight to our calls for a fairer, more modern property tax system.

Council Tax is still based on property values from 1991, leaving households across the country paying unfair and outdates rates. Sign our petition calling for an independent review of Council Tax and Stamp Duty, and for a move towards a fairer, simpler property tax that better reflects today’s housing market.

You can read the full press release below.

Six Labour MPs have today backed Andy Burnham’s call for property tax reform, as new analysis from campaign group Fairer Share reveals Makerfield constituents pay twice the council tax of Westminster residents in similar properties. 

The frontrunner to replace Keir Starmer said he wanted “reform of council tax” at his by-election campaign launch, calling the current system “highly regressive” and its 1991-based valuations “not justifiable”. He has previously highlighted how the status quo benefits wealthier home-owners over lower-income families, noting: “You can be paying much more council tax in a Band D house in Greater Manchester than in some of the very wealthiest parts of London.”

One Labour MP called council tax “an idea whose time has come”, while another said a proportional tax would tackle rising household bills more than the “tinkering” with council tax that government began consulting on last week. The six MPs are Jonathan Hinder, Patrick Hurley, Chris Webb, Ian Byrne, Jonathan Brash and Afzal Khan.

Analysis by Fairer Share, the national campaign advocating for a Proportional Property Tax to replace both council tax and stamp duty, shows a standard Band D property in Makerfield faces a council tax bill of £2,152 this year. This is more than double the levy on residents in a Band D property in Westminster, who pay just £1,048. Households living in £280,000 homes in Makerfield pay more Council Tax than owners of £10 million properties in Westminster. The effective property tax rate on the Makerfield home is around 0.75%, compared with just 0.02% for the Westminster mansion.

Fairer Share research also shows the average Makerfield household would save £500 a year under a Proportional Property Tax, a uniform annual levy based on a percentage of property’s value. Over 98% of households in the Greater Manchester constituency would be better off. Meanwhile an MRP poll carried out in 2022 by JL Partners showed residents of Makerfield overwhelmingly supporting a Proportional Property Tax (59% in favour versus just 8% opposed).

Jonathan Hinder, Labour MP for Pendle and Clitheroe, said: 

“A Proportional Property Tax would reaffirm to ordinary people that Labour’s on their side, putting pounds in their pockets without costing government a penny. Stamp duty and council tax are unpopular and broken, and there’s a credible alternative ready to go. A PPT could redistribute to lower-income and ordinary families within Labour’s fiscal rules. It’s an idea whose time has come.”

Patrick Hurley, the Labour MP for Southport, said:

“People in Southport know the council tax system is unfair because they feel it in their pockets every year. Figures from Fairer Share show we’re paying around a third more than the national average when you look at it as a share of property value. That just isn’t right. Families here work hard and shouldn’t be asked to shoulder a bigger burden than wealthier parts of the country.”

Chris Webb, Labour MP for Blackpool South, said:

“The Chancellor rightly highlighted at the Budget how properties in Blackpool pay £300 more council tax than £10 million mansions in Mayfair, exposing a system that entrenches unfairness and deepens inequality. The government’s current proposal of a surcharge on £2 million homes is a start, but we need to go further. 

“With consultation underway, and voters clearly demanding action that puts our residents first, we should be far bolder and move faster to deliver real fairness. A system this flawed doesn’t need tinkering, it needs transforming. A proportional property tax would be a fairer system that eases pressure on households who are being squeezed by rising living costs, especially at a time when global instability is driving bills higher and stronger action on the cost of living is needed more than ever.”

Ian Byrne, Labour MP for Liverpool West Derby, said: 

“Andy is right council tax is regressive and needs reform. My constituents pay a higher rate than some of the richest people in the UK thanks to an outdated and broken system. We could announce a comprehensive review of the property tax system, to put money in people’s pockets, end this inequality and deliver the change communities are crying out for.”

Jonathan Brash, MP for Hartlepool and chair of the council tax reform APPG, said: 

“Council tax is broken. It is a poverty tax that hits working people hardest while the wealthy get away lightly. Hartlepool, like Makerfield, shows just how rotten this system has become. Families in ordinary two-bedroom homes are paying more than people living in million-pound mansions in Westminster. That is not fair. It is a national scandal.

“The APPG has heard time and again how this outdated system punishes people who are already struggling to get by. Enough is enough. We need to scrap council tax and replace it with a fair system that works for every community in the country.”

Afzal Khan, Labour MP for Manchester Rusholme, said:

“Andy is right – the council tax system is outdated and disproportionately burdens those who pay outside of London and the South East. Replacing council tax, stamp duty and bedroom tax with a much fairer proportional property tax would make over 18 million households better off. This includes over 90% of households in my constituency, who’d save an average of £500.”

Andrew Dixon, Chair of the Fairer Share campaign group said: 

“Andy Burnham has struck a chord. Replacing Council Tax and Stamp Duty with a Proportional Property Tax is hugely popular in Makerfield. It would benefit the vast majority of households in the constituency, and address one of the core inequalities and injustices at the heart of our tax system. It’s an idea whose time has come with government consulting on council tax reform and the Iran crisis pushing up energy and food bills.

“The Greater Manchester mayor has said we can ‘come up with a proposal where Left meets Right on this’ – a PPT is that proposal, with support spanning not only the Labour benches but the Tory chairman too.

“The UK already has the highest property taxes in the OECD. Replacing an outdated and inherently regressive council tax system will create a fairer system that doesn’t need to increase the overall tax burden. Meanwhile replacing stamp duty would improve labour mobility, support downsizing and help households move to homes that better suit their needs.” 

Last October 13 Labour MPs – led by Jonathan Brash, MP for Hartlepool – wrote to the Chancellor urging a full review of property taxation, before think tanks from the IPPR to Onward and the Adam Smith Institute also united in November to condemn council tax and stamp duty. A PPT is said to have been seriously considered at the last Budget, with the Prime Minister’s economic adviser Minouche Shafik a reported supporter.

This month Paul Johnson, former IFS director, endorsed the government petition to review council tax and stamp duty, saying: “Any government serious about both growth and fairness would have this top of their agenda.” Over 27,000 signatories have now signed the petition.

Support for reform is increasingly crossing political boundaries as voters recognise that a tax system based on 1991 property values is no longer sustainable. Britain’s property taxes now raise more revenue than any other OECD country, yet many households continue to face highly regressive outcomes. Council tax arrears have now risen above £8 billion, highlighting growing pressure on households and the need for reform.

NOTES:

Fairer Share research also shows even residents of the lowest-value homes in Makerfield face twice the bills of their Westminster counterparts, with Wigan Council charging Band A properties (the most common locally) £1,435. Westminster charges just £699.

More information on how a PPT would work can be found on Fairer Share’s website.

In Liverpool West Derby, constituency of Ian Byrne quoted above, Fairer Share data finds the average household would save £750 from a PPT, with 99% of households better off. In the constituency, the public back the measure by 58% to 5% opposed.

In Pendle and Clitheroe, constituency of Jonathan Hinder quoted above, Fairer Share data finds the average household would save £800 from a PPT, with 99% of households better off. In the constituency, the public back the measure by 59% to 8% opposed.

In Blackpool South, constituency of Chris Webb quoted above, Fairer Share data finds the average household would save £750 from a PPT, with 100% of households better off. In the constituency, the public back the measure by 57% to 7% opposed.