Council Tax Reform

Jonathan Brash Excerpts

Wednesday 19th March 2025 Commons Chamber

[Mr Jonathan Brash (Hartlepool) (Lab)]

Council Tax is, without doubt, the most unfair, regressive and punitive taxation system in this country. It is hammering towns such as Hartlepool. Places with high deprivation and low wages—the very areas that a fair tax system would support—are instead being squeezed to breaking point by a broken system that must be fixed. A Government that stand up for working people, promise change and have a mandate for that change cannot sit back while such fundamental unfairness continues.

The numbers speak for themselves. For a band A property in Westminster, it is £648 a year. In Hartlepool, it is £1,585. A Band H property in Hartlepool pays nearly £3,000 a year more than one in Westminster.

[Richard Foord (Honiton and Sidmouth) (LD)]

The hon. Member makes a good point in comparing his constituency with the situation here in London. To continue that point, on top of council tax, there is the settlement funding for councils, of which London boroughs have received roughly twice as much as shire counties. Does the hon. Member agree that that is also a problem with the current council tax regime?

[Mr Brash]

Certainly, the last 14 years—I note that none of the Conservatives are here—shifted the settlement away from areas of deprivation to more affluent areas. That has had an incredibly punitive effect.

Council tax in Hartlepool represents 9% of median gross pay. Here in Westminster, it is just 2%. Someone can live in a multimillion-pound property in London and still pay less council tax than someone in a terraced house in Hartlepool. It is not right. It is not fair. It must change. An outdated system based on 34-year-old property values can never deliver fairness and has widened regional inequalities.

[Sarah Dyke (Glastonbury and Somerton) (LD)]

Sixty-six per cent of Somerset council’s budget goes to fund social care. That budget is funded through the taxes raised on property based on prices from 1991, as the hon. Member has set out. Does he agree that that is archaic and unfair, and that we should enact real reform to the way we fund local authorities?

[Mr Brash]

I absolutely agree and I will come to social care later in my speech, so I will pick up that point then.

[Jim Shannon (Strangford) (DUP)]

May I commend the hon. Member for bringing forward the debate? He is getting himself a reputation in this House for being an assiduous constituency worker. I wish him well in continuing to do the good work that we all witness.

Does the hon. Member not agree that with the cost of living crisis, working families—that is what we are talking about here—need to know that every penny of tax is wisely spent? Confidence is clearly at an all-time low. Does he further agree that greater openness and transparency as to the use of tax funds can only be a good thing throughout this great United Kingdom of Great Britain and Northern Ireland?

--- Later in debate ---

[Mr Brash]

I absolutely agree. I should first say that it would not be an Adjournment debate without an intervention from the hon. Member. He is absolutely right: we need transparency in the system. One of the biggest problems with council tax is that it has broken the bond of trust between those who pay it and the services that they receive. I will come back to that point later in my speech.

[Grahame Morris (Easington) (Lab)]

My hon. Friend and neighbour makes some excellent points about the unfairness of the council tax system. My view is that it cannot be tinkered with and it is fundamentally flawed. For my constituents and my hon. Friend’s, it is nothing less than a regressive property tax. In Blackhall in my constituency, someone living in a modest band A home worth £35,000 pays almost the same in council tax as a band H property in Belgravia worth many millions of pounds. That is indefensible. Does my hon. Friend agree that if we are serious about tackling growth and improving living standards in constituencies such as mine and his, we need radical reform?

[Mr Brash]

I absolutely agree with my hon. Friend. The tinkering around the edges that has happened in some parts of the United Kingdom will not get the job done.

My hon. Friend mentioned property prices, and they are at the heart of the unfairness. In Hartlepool, 53% of the properties are in band A. Here in Westminster, that figure is 1.2%. In Hartlepool, only 3.7% of the properties are in bands F to H, yet in Westminster it is almost half of all properties. Such a skewed housing base makes it impossible to raise the money to deliver the services that people need. Furthermore, council tax is not a reliable source of income. Nationally, one in 10 people in the UK have been in council tax debt, and nearly 40% of those individuals have reported being threatened with legal action as a result. Outstanding council tax debt already stands at £6 billion.

This week I spoke to Caroline, a development officer in Hartlepool who supports many of the most vulnerable in our community. She told me of one working family for whom council tax, even with the reduction, is now the equivalent of more than a third of their mortgage payment. Dad works and mum is a full-time carer for their disabled son. They live in fear of not being able to pay. They do not understand where their money goes and they do not feel any benefit, only financial pain. How can we sustain such a system? How can we stand by while it punishes the very people we are supposed to represent?

At the heart of this broken system is social care, as has been mentioned already. Nearly 70% of Hartlepool’s budget is spent protecting the most vulnerable children and adults in our town, and that is mirrored in areas of need across the country. No one in their right mind would design a care system funded by a regressive tax levied on small, struggling communities, yet that is exactly what has happened and it has been getting worse. In Hartlepool, officers have made a rough estimate that if social care were removed, a typical band D property would see its bill drop from £2,400 to less than £1,000.

Elsewhere, the scandal in children’s social care is slowly bankrupting local authorities. Private providers, often owned by faceless hedge funds, are profiting on the backs of vulnerable children. The costs are staggering. In Hartlepool, the top four private providers charge an average of £12,000 per child per week. That is £624,000 a year for just one child. For Hartlepool, that is the equivalent of more than a 1% rise in council tax for one child’s care. Local councillors face the impossible choice: protect the most vulnerable or impose even more council tax pain on their residents.

The most pernicious thing about this regressive tax is the impact it has on trust. “No taxation without representation” is the saying, but as council tax bills go up, services are cut. Residents are no longer receiving the representation their money is supposed to deliver. Most people, thankfully, do not need social care, but they do need bin collections, clean streets, well-maintained parks, green spaces, museums, leisure centres and libraries —all things that make somewhere a place—yet these are repeatedly cut because of this failed system.

This is breaking the bond between councils and the public, and when people feel they are paying more but getting less, they stop believing in the system. When voters feel ignored and abandoned, they do not stop voting; they will vote for anyone with easy answers. Populist politicians with no real answers will step into this gap and exploit this frustration. I warn Ministers: fix council tax or face the electoral consequences.

There are alternatives. Andrew Dixon and the Fairer Share campaign have advocated for a proportional property tax that would ensure contributions were based on actual property values. Some 70% of households in the north-east would be better off. Nearly a third would save as much as £1,500 a year—money that could help struggling families put food on the table, heat their homes and buy their children the things that they need. Yes, some would lose out, but it would, and should, be the wealthy in our society shouldering that burden. If we are not prepared to make the wealthy pay so the poor can pay less, what exactly are we for?

[Jonathan Hinder (Pendle and Clitheroe) (Lab)]

I pay tribute to my hon. Friend the Member for Hartlepool (Mr Brash) for securing this incredibly important debate, and I agree with every word he says. Does he agree that a reformed system would reduce the cost of living for ordinary people and, depending on how the Government wanted to reform it, actually increase revenues for the Government to spend on better public services?

[Mr Brash]

Absolutely. A properly balanced system could provide the services we need and put more money into the pot to ensure those services are delivered. That is partly the problem with this system: it is so broken that it punishes people in deprived areas, and it still does not deliver those services.

I know Ministers have said they are not looking to reform the council tax system in this Parliament, but even if an overhaul of the entire system is not possible, there are still ways to improve things, and I hope the Minister will advocate for them. The Casey review of social care should recommend taking social care out of local authorities. The Children’s Wellbeing and Schools Bill, by promoting regional co-operation, can create economies of scale to take the burden off council taxpayers. Under the English devolution proposals, financial devolution must be part of the discussion. If we are to have larger authorities that are more remote from the taxpayer, the residents must see the benefit in their pockets.

This Government promised change and to fix the foundations, but the public’s most direct contact with government is through local councils, whose foundations are crumbling. If Ministers ignore council tax reform, they do so at their peril. We can fix a broken system, ease the burden on working families, and restore trust in government at all levels. We have a moral duty to right a 34-year-old wrong, find a sustainable solution to this injustice, cut council tax bills and deliver real change for the people we represent.

English Devolution and Local Government

Jonathan Brash Excerpts

Wednesday 5th February 2025 Commons Chamber

[Angela Rayner]

Again, I acknowledge the situation in Surrey. We have said that we want to work with Surrey to deliver. That is why we are bringing this forward. As I say, it is a short-term delay; democracy comes to us all eventually.

[Mr Jonathan Brash (Hartlepool) (Lab)]

Mayors can make a huge difference to local communities. Indeed, we have seen that in Greater Manchester, where public control of bus services has made a massive difference to residents. I want public control of bus services in Hartlepool, where services are not good enough. Does my right hon. Friend share my disappointment that the Conservative Mayor of Tees Valley has ruled out public control of buses? When mayors do not use their powers, what can we do to force them to do so?

[Angela Rayner]

I welcome what Greater Manchester buses have delivered for my constituents in Tameside—better services all round. We want the same for Hartlepool. I gently encourage all Members from the Teesside area to work with the mayor to unleash all the powers I mentioned in my statement, in order to deliver better transport and connectivity. That is how we will unlock growth in all our regional areas, which is what we want to see across Hartlepool, Teesside and the whole of England.

Local Government Finance

Jonathan Brash Excerpts

Wednesday 5th February 2025 Commons Chamber

[Jim McMahon]

I thank my hon. Friend for that question and pay tribute to Salford for its leadership in the work it is doing in many areas of public sector reform in Salford and across Greater Manchester. In the end, if all we do is pay at the back end for a system that, frankly, is broken, we will be paying more and more every single year for a system that is delivering worse outcomes for service users. That is bad for service users and bad for taxpayers, so we must have a more fundamental response and we fully intend to do that.

The multi-year settlements are essential to ensure local leaders have the time and space to plan their budgets. But we will not stop there. We are introducing a fairer system to give councils the certainty and stability they need to go from costly crisis management to long-term prevention and the root-and-branch reform of local public services. Crucially, I can now confirm that core spending power for the sector will be more than £69 billion for 2025-26, a 6.8% cash terms increase on this year. I can confirm that, despite some very difficult choices—there have been choices and trade-offs to make, as there always are—this settlement will mean that no local authority will see a reduction in its core spending power.

[Mr Jonathan Brash (Hartlepool) (Lab)]

I welcome the settlement, which sees a reversal of the past 14 years for Hartlepool, where cumulatively we lost £235 million in a decade. This year, additional grant funding is going up by £10 million, which is hugely welcome. However, there remains the problem of the council tax system itself. In Hartlepool, if you are in a band H property you pay more than £3,000 more than you do if you are here in Westminster. Surely the Minister can agree with me that that is inherently unfair? Will he engage with me and the all-party parliamentary group on council tax reform, which I lead, to bring fairness to towns such as Hartlepool?

[Jim McMahon]

There are, understandably, many criticisms of council tax. It is accepted that it is a fairly regressive tax in terms of the relationship between the ability of a household to pay versus a property’s value, but in the end it is a reliable tax that is understood by the taxpaying public. The framework of council tax will be maintained, in the same way as business rates, but that does not mean that we cannot do more to make it fairer. The best way to make it fairer in this settlement is for the Government to play their part. What we have seen over the past 14 years is that, despite an acceleration in council tax increases, councils have still found themselves impoverished: they cannot raise enough money locally, whatever they do, to fund the demand for local public services. We clearly see the role of the Government as an equaliser to the system. Taking into account the ability to raise tax at a local level, by providing a top-up the Government can ensure that every area gets decent local public services, and we can begin to get some fairness into the system. I take my hon. Friend’s point entirely, however, and I look forward to the work of the all-party parliamentary group.

Community Engagement Principles and Extremism Definition

Jonathan Brash Excerpts

Tuesday 21st January 2025 Commons Chamber

[Alex Norris]

I agree with a lot of what the hon. Lady’s says about earlier interventions and tackling isolation at its root. As she says, local authorities are really important partners in that endeavour. That is why we will ensure that whatever comes out of our communities and recovery steering group leans into the partnership with local authorities and local law enforcement, where possible, to ensure that the right resources and support are in place.

The hon. Lady asks about engagement and ensuring that we have a contribution from those affected across our faith communities. My noble Friend from the other place, Lord Khan, the Faith Minister, has met representatives of all faiths and will continue to do so. The Government will keep having that important dialogue with different faith groups to ensure that the ideas that we bring forward will be effective and are rooted in real life, but we will also promote inter-faith work, which she mentioned. I know from my own community that when we have had challenges, the best thing we have had to lean on to tackle hate, wherever it might emerge, is the inter-faith relationship.

[Mr Jonathan Brash (Hartlepool) (Lab)]

There is real division in our communities, and extremism is changing at great speed. Although the vast majority of Members in this House treat such division as a tragedy and as something that needs to be solved calmly, there are some, sadly, who appear to view it as a political opportunity. Does the Minister agree that Members need to be calm in their dialogue on this issue, and that when they are not, they should be called out by all political parties?

[Alex Norris]

I have always felt that there were two types of politician. There are those who seek to move things forward politically by bringing people together, and those who seek to exploit division. It is up to individual hon. and right hon. Members to decide which is their personal approach. When there is divisive—or bordering on hateful—language in political parties, we would expect them to resolve that in their normal ways. With regard to leadership in this country, we are certainly the luckiest people in the country. We get to come here every day and tackle these issues head-on in the interests of our communities and our country. Almost exclusively, Members use that platform for good. We have important distinctions and differences, and that is great in a democracy, but we want to bring the country together and move it forward together. That is certainly the approach that I will be using.

Local Government Reorganisation

Jonathan Brash Excerpts

Wednesday 15th January 2025 Commons Chamber

[Jim McMahon]

Agreeing to write off £2 billion of debt at the Dispatch Box would be quite career-limiting, I would say. I can say, however, that the scale of the financial challenge in some areas is absolutely understood and we will work to try and find a solution. We are not yet at the point of announcing that, however.

[Mr Jonathan Brash (Hartlepool) (Lab)]

In Hartlepool, 75% of every penny spent by the council is spent on social care. That is contributing to a burden on council taxpayers in Hartlepool that is far too high. Does the Minister agree that in the wider local government reorganisation, consideration needs to be given to regional collaboration on social care or, indeed, removing social care from local government altogether to ease the burden on council tax payers?

[Jim McMahon]

My hon. Friend will be aware that Dame Louise Casey is conducting a broader review of adult social care for reasons that are well understood by the House. On whether the matter should or should not sit with local government, I will say that where local government really excels is in being local and rooted in the community, in being the deliverer of a public service and in being able to organise at a place level. That does make a difference, and we should not underestimate the impact when done well. We need to make sure that social services are adequately funded for the work they have to do to provide a good level of service for local people.

Oral Answers to Questions

Jonathan Brash Excerpts

Monday 28th October 2024 Commons Chamber

[Jim McMahon]

We always say that local government is paid for one way or the other: either we pay at the front-end through fair funding being fairly distributed across the country, or we pay at the back-end because eventually the system falls over and we must repair the damage. If we take ourselves back to the coalition years, when austerity first came in, the cruelty was that we did not reform public services, repairing them from the ground up, to get ahead of those system changes. That was a wasted opportunity.

[Mr Jonathan Brash (Hartlepool) (Lab)]

This year, Hartlepool borough council is set to overspend on children’s social care by some £5 million, due in no small part to the outrageous charges levied by private sector children’s homes. What can the Minister do to cap those providers’ charges to ensure that local government can continue to deliver its statutory obligations?

[Jim McMahon]

I recognise that, in large part, children’s services are the funding pressures that are driving council budgets. We cannot forget, though, that behind every one of those numbers is a child who often is not getting the outcomes they need. Far too often what we are seeing in the system is that high costs are not just sending councils to the point of bankruptcy, but delivering worse outcomes for young people. We want to see far more resilience built back into the system, and there are examples today of councils that are building that public sector provision back into the marketplace.

Employment Rights Bill

Jonathan Brash Excerpts

2nd reading
Monday 21st October 2024 Commons Chamber

[Mr Jonathan Brash (Hartlepool) (Lab)]

As many Members have done, I proudly register my membership of the GMB and Unison, and that I am a co-owner of a small business.

One of the consequences of the last 14 years is insecurity in every part of British life. Hartlepool people, who I represent, are insecure in their communities, in their homes and in their jobs. That is why I welcome the Bill, which has security at its heart, banning exploitative zero-hours contracts, ending fire and rehire, and providing day one rights. Listening to Opposition Members—maybe the shadow Minister could reflect on this in his wind-up speech—I would like to know on what day the Conservative party believes it suddenly becomes not okay to unfairly dismiss somebody. What is that time? If it is anything other than day one, then quite frankly they are abandoning the workers of this country.

The Bill does more than give security to workers. It gives people dignity: the dignity to grieve without having to ask permission; the dignity to choose to become a parent without having to worry if it will affect their opportunities in the workplace; the dignity of knowing that they can afford to be ill; and the dignity of knowing that they can turn up to work and be safe. Security and dignity are what British workers, including in Hartlepool, deserve. When people have security and dignity in the workplace, they get opportunity: the opportunity to grow, to develop, to train, to become better at what they do and to become more productive.

In recent days, I have heard people on the right of politics suggest that the Bill is somehow an attack on the “wealth creators” of our country. What nonsense. Let us be absolutely clear: the wealth of this country is created by its workers. Through the dignity, security and opportunity that the Bill provides, we will grow our economy and give respect to every worker in my constituency and beyond.

City and Town Centres: Regeneration

Jonathan Brash Excerpts

Wednesday 16th October 2024 Westminster Hall

[Catherine Atkinson]

My hon. Friend is a great friend to her local high street businesses. The Government have made a commitment on the community right to buy, and the Co-op party makes a strong case for devolved community ownership funds. I thank my hon. Friend for her intervention.

I turn to the scourge of vacant properties, which we need a particular focus on. Derbyshire Live estimated in May that more than 80 shops in Derby city centre were currently up for sale or to let—an increase of about 60% on two years previously, when it carried out the same survey of the major shopping streets. In the last few months, we have seen green shoots, with about 30 new businesses opening in Derby city centre and I have high hopes for the effect of the regeneration we have planned. We have some stunning architecture, but unused buildings fall into rack and ruin. Empty units are such a blight on town and city centres that I want to call today for a specific Government strategy on vacant shops.

[Mr Jonathan Brash (Hartlepool) (Lab)]

My hon. Friend is making an excellent case for our high streets. In Hartlepool derelict commercial properties are a similar problem. Just in the last few days the old Odeon building in Hartlepool was the victim of arson and is being demolished as I speak. Do we not need to give far greater powers to local authorities, as has already been mentioned, particularly around compulsory purchase, to get these buildings out of the hands of private developers who, frankly, are not interested in the pride and community of our high streets that we are arguing for today?

[Catherine Atkinson]

That is certainly one option that we must explore. I know that my hon. Friend has been a strong advocate for investment in Hartlepool.

Fairly or unfairly, many people will judge how well the economy does on whether the number of empty shops in their local town or city centre noticeably rises or falls.