‘Fix Council Tax to beat Reform’

As Labour returns to Parliament, one theme must dominate our debates and our message to the country – delivery. Voters have placed their trust in us not for warm words, but for action that makes a tangible difference in their daily lives. That means tackling the cost of living crisis head-on, proving we are serious about regional equality, and showing that government can once again be a force for fairness.

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One reform in particular could show how we are willing to take on big bold ideas to tackle the problems the British people are facing – fixing Britain’s broken property tax system.

Council Tax, designed in the early 1990s and still pegged to property values from 1991, is not fit for modern Britain. It punishes families in modest northern homes while giving a free pass to those living in multi-million-pound properties in London and the South East. The result is a system that actively entrenches inequality, squeezes working people, and holds back our mission to grow and transform the country.

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The figures are shocking. Research from Fairer Share shows that nine of the ten constituencies with the highest Council Tax burden relative to property value are in the North. My constituency of Hartlepool is the second worst affected in the whole country. Meanwhile, the ten constituencies with the lowest burden are all in central London. That is not fairness—it is an out of date postcode lottery that taxes the poorest more heavily than the wealthiest.

Families in areas like mine put their trust in Labour at the last election to tackle rising household bills, but Council Tax in its current form is, in effect, a regressive wealth tax—one that demands more from those who have less.

That’s why 16 Labour MPs and I signed a letter calling on the Chancellor, Rachel Reeves, to use the forthcoming Budget to launch a root-and-branch review of property taxation. Done properly, reform would cut unfair bills for millions of households, support regional equality, and even boost the Treasury in a tough fiscal environment. Announcing a review would be a much needed signal the Government is taking the cost of living seriously.

As we head into local elections next year, voters will ask whether Labour is ready to deliver. We can answer with policies that don’t just tinker around the edges, but that confront the deep unfairness of our economy. Property tax reform is one of those policies. It offers a way to show that Labour is listening to ordinary families, taking their concerns seriously, and is willing to act where the Conservatives have failed.

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By fixing Council Tax, we can lift the burden on working people, give our communities a fairer deal, and deliver on the promise that brought us into government.

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