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Council Tax Reform

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Property

Thank you for contacting me about council tax reform and the proposal for a proportional property tax.

I read the proposal with interest and it raises important points about fairness in our tax system. However, as I understand it, evidence about how the proportional property tax would work in England shows that a lot of places that are low-income areas but also experiencing rising house prices would be hit very hard, even places with high levels of deprivation and low household incomes. If house prices were to rise in an area, low-income households would quickly see their bills rise at staggering rates well above increases to their income.

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Proportional Property Tax.pdf 217.46 KB

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