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It warned that ‘rising bills, falling support, and a bizarre, outdated design’ meant council tax was increasingly resembling Margaret Thatcher’s ‘dreaded’ Poll Tax.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

Targeted Early Help Practitioner

Wakefield Council
Grade 7 - Grade 8, 18.5 hours, Temporary
We are looking for an enthusiastic individual to work part of a multidisciplinary team to support the delivery of the Targeted Early Help Wakefield, West Yorkshire
Recuriter: Wakefield Council

Apprentice - Business & Administration

Essex County Council
Up to £14567.00 per annum
Apprentice - Business & AdministrationFixed Term, Full Time£14,567 per annumLocation
Recuriter: Essex County Council

Youth Worker (North/West)

Oxfordshire County Council
£31537 - £34434
About Us We believe in relationships that make a difference and creating the space for young people to feel seen, heard, and supported. If you’re passionate about supporting young people, this is where you belong. The Targeted Youth Support Service (TY Oxfordshire
Recuriter: Oxfordshire County Council

Engagement and Customer Support Officer

Derbyshire County Council
Grade 9 £32,347 - £34,317 per annum
Are you passionate about delivering exceptional customer service and creating engaging communications? Derbyshire
Recuriter: Derbyshire County Council

Engagement and Customer Support Manager

Derbyshire County Council
Grade 11 £39,865 - £43,270 per annum
Are you passionate about delivering outstanding customer service and building strong stakeholder relationships? Derbyshire
Recuriter: Derbyshire County Council
Linkedin Banner