The movement to reform property taxes in the UK is gathering momentum, driven by a broad coalition of MPs, thought leaders, and campaigners across the political spectrum. Together, we authored an open letter to the Prime Minister, urging decisive action to address the pressing issues posed by our outdated property taxes. In this letter, we emphasize how Council Tax and Stamp Duty are hindering economic growth, stifling home ownership, and exacerbating inequality. It is our collective belief that now is the time for bold, structural reform that would support Labour’s ambitious vision of a progressive, inclusive society.
This letter, co-signed by prominent figures and experts, represents a “broad church” of opinion unified by a common goal: a fairer, more efficient, and modernised tax system. We are deeply grateful to all those who added their voices to this call — individuals whose dedication and expertise underline the importance of this issue. From MPs like Jonathan Brash, Liam Byrne, and Grahame Morris, to leaders from esteemed think tanks such as the IPPR, Bright Blue, New Economics Foundation, and the Intergenerational Foundation, this coalition embodies a shared commitment to the values of fairness and social equity.
We came together because the need for reform is undeniable. Council Tax, based on property values that date back more than 30 years, disproportionately burdens low-income families, young people, and residents in less affluent regions. Under the current system, someone with a £100,000 home pays six times more, as a percentage of property value, than someone in a £1 million home. As of March 2024, outstanding Council Tax debt in England has reached an unprecedented £6 billion, much of it incurred by those struggling to meet the rising cost of living.
Our call is a call for change, not just for policy but for a vision where taxes reflect real property values, where housing affordability is no longer a pipe dream, and where economic inequality is addressed at its root. Reforming Council Tax is essential to alleviating the financial strain on families and reducing economic inequality — both key elements of Labour’s manifesto promises.
But we cannot tackle the housing crisis and economic stagnation with Council Tax reform alone. Stamp Duty, while more progressive, also deters mobility and prevents people from seizing job opportunities due to the high cost of moving. A dynamic economy requires a dynamic housing market, and reforming Stamp Duty is another crucial step toward a fairer, more flexible system that supports job mobility, productive use of housing, and economic growth.
The signatories to this letter underscore the urgency of these reforms. Alongside dedicated MPs, we have distinguished voices like Sir Vince Cable, former leader of the Liberal Democrats; John Muellbauer, Professor of Economics at Oxford; and Polly Neate, Chief Executive of Shelter England, all bringing their insights and support to this shared cause. Their involvement signals a unique alignment on the need for tax reform across the ideological spectrum, bringing together economists, social justice advocates, academics, and policy leaders who share a vision of a modernised system that works for all.
We must act. If we do not reform Council Tax and Stamp Duty, taxes will still be based on 1991 valuations, creating deeper divides and leaving households more burdened and governments underfunded. A reformed tax system based on up-to-date property or land values would not only generate fairer revenue but would support more effective housing policies, improve access to affordable homes, and contribute to social cohesion across the UK.
Our letter to the Prime Minister is more than a policy proposal; it is a statement of shared purpose and a commitment to securing a fairer society. By uniting across sectors, ideologies, and regions, we are building the momentum needed for meaningful change. Together, we can create a property tax system that is equitable, transparent, and rooted in the principles of fairness.
