This petition was submitted during the 2017-2019 parliament
Petition Reform Council Tax into a fairer system based on wealth not valuations from 1991
Council Tax is only weakly linked to the value of property and has failed to capture changes in house prices. The original Council Tax bands – using 1991 valuations – have never been changed.
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Council Tax is deeply regressive. Someone living in a home worth £100,000 in 2015-16 faces an effective tax rate 5X as high as someone living in a million-pound property. Average income tax paid by the top 10% of earners is 45X that of the bottom 10%, but average net CT is only 2.7X higher for the top 10% of properties than the bottom 10%. Only the TV licence matches the regressiveness of CT.
CT is supposed to be one of the UK’s main methods for taxing wealth, but has proved spectacularly bad at doing so. Rising house prices are a prime reason why wealth has grown 2.5X faster than the economy since 1980, but wealth-related taxes have remained flat.
This petition is closed This petition ran for 6 months