Council Tax Reform

Debate between Jonathan Brash and Richard Foord

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 An outdated system based on 34-year-old property values can never deliver fairness and has widened regional inequalities.