London, 23 June 2025

Fairer Share has welcomed the Government’s recognition that the council tax system is outdated and in urgent need of reform, but warns that the measures announced today* fall far short of what is needed to deliver genuine fairness and sustainability in local government finance.

The Government’s proposed “council tax shake-up” aims to adjust funding allocations to support councils serving more deprived communities. While we support the principle of redistribution, we argue that this approach merely reshuffles the burden within a regressive and broken system, rather than addressing its fundamental flaws.

Andrew Dixon, Founder of Fairer Share, said:

“This announcement is an admission that the current council tax system is not fit for purpose. But rather than tinkering with allocations, the Government should be replacing the entire framework with a modern, proportionate approach that taxes homes based on their actual market value. A Proportional Property Tax would ease the cost of living for millions, reduce regional inequality, and provide sustainable funding for councils across the country.”

Our flagship proposal – the Proportional Property Tax (PPT) – would:

  • Replace Council Tax and Stamp Duty with a simple annual levy of 0.48% of a property’s value;
  • Deliver an average annual tax cut of £556 for 19 million households;
  • Generate £5.6 billion in surplus revenue to reinvest in public services;
  • Provide stable, predictable income for local councils, supporting multi-year financial planning;
  • Ensure fairness by taxing empty and second homes at a higher surcharge rate of 0.96%, a move that would benefit local communities in high-demand areas such as the South West.

Polling shows the policy is three times more popular than opposed, with strong backing across political lines.

Dixon added:

“It’s encouraging to see consensus emerging that council tax needs reform. But voters are tired of half-measures. If the Government is serious about levelling up, easing the cost of living, and funding social care sustainably, it must go beyond patchwork fixes and commit to bold, systemic reform.”

ENDS

* https://www.gov.uk/government/news/council-tax-shake-up-to-deliver-fairer-billing-and-support