Ellie Ames 17 February 2025

‘Regressive’ council tax is a growing burden on poorest, report says

‘Regressive’ council tax is a growing burden on poorest, report says image
Image: Yau Ming Low / Shutterstock.com

The average council tax bill rose by 77% in real terms between 1994 and 2020, analysis has found.

A new Resolution Foundation report has warned that the ‘regressive’ tax is costing the poorest households an ‘ever-greater’ share of their income.

According to the think-tank, the poorest fifth of households were spending 4.8% of their household income on council tax at the start of this decade, up from 2.9% in 2002-3.

It means that in 2020, the poorest families were spending more than three times as much of their income on council tax as the richest households.

The poorest families now spend only £300 less on council tax than they do on income tax each year, the Resolution Foundation said.

It warned that ‘rising bills, falling support, and a bizarre, outdated design’ meant council tax was increasingly resembling Margaret Thatcher’s ‘dreaded’ Poll Tax.

The chair of the Local Government Association’s economy and resources board, Pete Marland, said: ‘Councils recognise that having to increase council tax, to bring in desperately needed funding, places yet more financial burden on households.

‘We remain clear to government that it is not the answer to meeting the long-term pressures facing high demand national services and needs to be urgently addressed in the upcoming Spending Review.’

SIGN UP
For your free daily news bulletin
Highways jobs

Head of Integrated Enforcement

London Borough of Richmond upon Thames and London Borough of Wandsworth
£72,468 - £88,374
Head of Integrated Enforcement... Wandsworth, London
Recuriter: London Borough of Richmond upon Thames and London Borough of Wandsworth

Registration Service Officer (Frontline)

Essex County Council
£25959.0000 - £28621.0000 per annum
Registration Service Officer (Frontline)Fixed Term, Full Time£25,959 up to £28,621 per annum Location
Recuriter: Essex County Council

ECC Intern

Essex County Council
Up to £0.0000 per annum
ECC InternFixed Term, Full Time£25,959 per annum Location
Recuriter: Essex County Council

Advanced Skills Worker

Essex County Council
£34353.0000 - £38035.0000 per annum
Advanced Skills WorkerPermanent, Full Time£34,353 up to £38,035 per annum Location
Recuriter: Essex County Council

Head of Property, Assets & Major Projects

Fenland District Council
Renumeration package £74 – 78k
This is a rare opportunity to combine strategic leadership, commercial asset management March, Cambridgeshire
Recuriter: Fenland District Council
Linkedin Banner