Council Tax

Lord Rooker Excerpts

Monday 3rd February 2025 Lords Chamber

Asked by

[Lord Rooker]

To ask His Majesty’s Government whether they plan to make council tax more progressive.

[The Parliamentary Under-Secretary of State, Ministry of Housing, Communities and Local Government (Baroness Taylor of Stevenage) (Lab)]

My Lords, there are currently no plans to reform council tax. I suppose I should sit down now. It is a widely understood tax with a high collection rate and contains a range of discounts and exemptions to reflect personal circumstances. Local authorities are also required to run local council tax support schemes to provide reductions to those on low incomes.

[Lord Rooker (Lab)]

I thank my noble friend, but how is it that a £12 million penthouse in Islington pays £1,000 less in council tax than a £1.5 million manor house in Hartlepool? It is eight times the value, yet it pays £1,000 less. This is why council tax is so regressive, and no tough decisions have been taken for 34 years. When people no longer know what a tax is for or how it is fixed, and they see this unfairness, that risks bringing the whole system into disrepute. It is a major political and social risk. Why are we taking it?

[Baroness Taylor of Stevenage (Lab)]

My Lords, we all know that there are problems caused by outdated valuations and the regressive nature of council tax. However, a widescale reform of the system would be time-consuming and complex, and we are committed to keeping tax on working people as low as possible. The Government will carefully consider the impact on councils and taxpayers before taking any further decisions on council tax.