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It warned that ‘rising bills, falling support, and a bizarre, outdated design’ meant council tax was increasingly resembling Margaret Thatcher’s ‘dreaded’ Poll Tax.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

Senior Social Worker - Learning Disability & Autism

Essex County Council
£48205 - £57988 per annum + Flexible Working, Hybrid Working
About the TeamThis is an exciting opportunity for a passionate and experienced Social Worker to join an innovative and award-winning Learning Disabil England, Essex, Harlow
Recuriter: Essex County Council

Social Worker Family Worker (Link Role), West Essex

Essex County Council
£38487.0000 - £51834.0000 per annum
Social Worker Family Worker (Link Role), West EssexFixed Term, Full Time£38,487 to £51,834 per annumLocation
Recuriter: Essex County Council

Harbour Operative

North Yorkshire Council
£25,614 - £26,847 Per annum
As our Harbour Operative, you will play a key role in promoting the harbour to both visiting and local vessels. Whitby, North Yorkshire
Recuriter: North Yorkshire Council

Bridge Operative

North Yorkshire Council
£26,847 - £28,153 pro rata per
The role has a three-week rota which allows for variety and rotation of weekend working, with additional payments for night and weekend work. Whitby, North Yorkshire
Recuriter: North Yorkshire Council

D1 Licensed Minibus Driver

North Yorkshire Council
£25,614 - £26,847 pro rata per annum
If you love working with people and naturally look out for others, you’re exactly who we’re looking for. Selby, North Yorkshire
Recuriter: North Yorkshire Council
Linkedin Banner