On June 20, 2025, the Ministry of Housing, Communities and Local Government launched a long-overdue consultation on modernising council tax administration.

The government acknowledged that current rules haven’t been meaningfully updated in decades and openly invited ideas to create an improved system. We gratefully took the opportunity to put forward our proposal for property tax reform for a system that’s fairer, more efficient, and better aligned with local needs.

They’re asking for views on several improvements, including:

  1. Payment plans & billing changes – Expanding default council tax payments from 10 to 12 monthly instalments and improving bill transparency to support household budgeting.

  2. Support system overhaul – Refreshing outdated supports like mental impairment discounts and care‑worker exemptions.

  3. Smarter enforcement – Adjusting liability order timelines and capping associated charges to avoid trapping people in unmanageable debt.

  4. Efficiency gains – Encouraging councils to embrace innovation and reduce internal barriers.

  5. Local funding fairness – Part of a holistic review aimed at reshaping how councils are financed via the “Fair Funding Review 2.0”

This signals government recognition that council tax is severely broken and they’re seeking constructive input, which we welcome greatly.

Fairer Share’s Submission: Pragmatic, People-Centred & Fair

We responded to Question 32—“How can we ensure council tax is paid fairly and efficiently?”—with solutions addressing root causes of the system’s failures:

1. Shift liability to property owners, not tenants

Currently, councils chase 9.3 million renters – an inefficient and often fruitless task. Instead, moving responsibility to the 513,000 private landlords and 1,600 social providers would improve collection, Reduce admin costs (saving  an estimate £400 million/year), and align liability with ownership, similar to business rates.

2. Introduce an optional deferment scheme

For households that are asset-rich but cash-poor, such as pensioners, allow them to defer payments (with modest interest), due only when a property is sold or inherited. This mirrors successful models in countries like Denmark and protects vulnerable households without cutting public funding.

3. Update 1991 valuations

Our proposal is to replace unreliable, outdated council tax bands with market‑linked property valuations or modern proportional bands. This would:

  • Restore accuracy and public confidence,

  • Improve perceptions of fairness,

  • Boost voluntary compliance.

4. Integrate digital systems

By syncing council tax with HMRC and DWP data, councils can proactively identify hardship situations, reduce fraud or errors, and direct support more effectively.

5. Embrace shared admin systems

Many councils duplicate back-office systems. We suggest pooling infrastructure so councils can focus on local leadership—not repetitive admin.

6. Move away from bailiffs

Enforcement via bailiffs adds financial and emotional strain on struggling households. We propose:

  • Creating local “breathing space” repayment plans,

  • Shifting to income-based recovery models. This supports repayment without punitive escalation.

Why This Matters

We applaud the government for opening the door to reform but piecemeal changes won’t be enough. Fairer Share’s submission shows how structural, system-wide redesign can address chronic issues:

  • Ridiculously high arrears? Solved by simplifying who pays.
  • Outdated valuations? Fixed with real-time property data.
  • Harsh enforcement? Replaced with fairness-focused recovery.
  • Council fragmentation? Tackled with shared digital infrastructure.

By reassigning liability, introducing deferment, and modernising billing, we can dramatically reduce costs, increase compliance, and protect families in hardship, all while funding vital local services sustainably.

What Happens Next?

The government will review consultation responses and draw up a formal plan, expected in the coming months as part of its “Fair Funding Review 2.0”. Fairer Share is calling for the solutions our submission outlines to be adopted in full.

A System Fit for the 21st Century

Council tax reform isn’t just a policy exercise – it’s a test of our ability to support local communities fairly and sustainably. We suggest brought real-world solutions: moving liability to owners, protecting vulnerable individuals, updating valuations, and removing punitive bailiff tactics.

This consultation is a golden opportunity. We look forward to working with government and councils to make council tax what it should be: simple, fair, and reliable.