The Fairer Share Team

Martin Lewis Secures Government Pledge to Reform Council Tax Debt Collection

Martin Lewis, the UK's most trusted consumer advocate, has achieved a significant milestone in the campaign for fairer council tax practices.

Following persistent efforts by Lewis and his charity, the Money and Mental Health Policy Institute (MMHPI), the government has announced a consultation to address the aggressive methods currently employed in council tax debt collection.

This move is a major win not just for Lewis and MMHPI, but for campaigners across the board – including Fairer Share – who have long called for a more compassionate and modern approach to property taxation. It reflects a growing consensus that the current council tax system is outdated, regressive, and in urgent need of reform.

The Issue: A System in Need of Reform

Under existing regulations, missing a single council tax payment can lead to severe consequences. Within three weeks, councils can demand the full annual amount, and if unpaid, escalate the matter to court, adding fees and potentially involving bailiffs - all within a six-week period. Lewis has described this process as "the most vicious and aggressive form of debt collection" in the UK, highlighting its disproportionate impact on vulnerable individuals, particularly those with mental health challenges.

Government Response: A Step Towards Fairness

In a recent interview on ITV's Good Morning Britain, Chancellor of the Duchy of Lancaster Pat McFadden acknowledged the issue and confirmed that the government will consult on changing these practices. The proposed consultation aims to allow a reasonable period for individuals to repay their debts, moving away from the current rapid escalation model.

Emotional Victory for Campaigners

Lewis expressed his emotional response to the announcement, stating, "I'm a bit teary, if I'm honest. In a good way, though, because I just had a win that I wasn't expecting." He emphasised the devastating impact the current system has had on countless individuals and expressed hope that this consultation marks the beginning of meaningful change.

Broader Support and Implications

The MMHPI and other organisations have welcomed the government's decision. Helen Undy, Chief Executive of the MMHPI, remarked, "We are absolutely delighted that the Government has listened to sense and is taking the first steps towards making council tax debt collection fairer".

This development aligns with Fairer Share's ongoing advocacy for a proportional property tax system that is equitable and reflective of individuals' ability to pay. The current council tax framework, with its outdated valuation bands and punitive collection methods, underscores the need for comprehensive reform.

Looking Ahead

As the government moves forward with the consultation, stakeholders and citizens alike have an opportunity to contribute to shaping a more just and compassionate approach to council tax collection. Fairer Share remains committed to supporting initiatives that promote fairness and equity in property taxation.

For more information on Fairer Share's proposals and how they stand to benefit homeowners and local areas alike, head to our policy page.

by The Fairer Share Team

Leading UK Economist Endorses a Proportional Property Tax

This week, a powerful voice joined the growing consensus that Britain’s property tax system is broken - and ready for reform.

In a striking piece for The Times, David Smith, the long-standing Economics Editor of the Sunday Times, lays bare the outdated, unjust, and economically damaging state of UK property taxation. His conclusion? It's time to scrap both stamp duty and council tax and replace them with a fairer, proportional property tax.

At Fairer Share, we've been making this case for years. What’s new - and vital - is that mainstream, respected economists like Smith have been adding their weight to the movement for reform.

A Broken System: Regressive, Outdated, and Counterproductive

As Smith writes, "Britain taxes homes in a way that is outdated, damaging and economically outdated." He highlights two core problems:

• Council tax, based on 1991 property valuations, is deeply regressive. A three-bed semi in Blackpool can attract a bigger council tax bill than Buckingham Palace. Those in modest homes pay proportionally far more than those in mansions.

• Stamp duty is a tax on mobility, disproportionately penalising people for moving; whether that’s downsizing, relocating for work, or finding a family home. It discourages sensible housing choices and chokes up the market.

Both taxes increased recently, hitting households at a time when costs are already high. Council tax bills have risen by an average of 5%, with a typical Band D property in England now paying £2,280. Meanwhile, the return to a lower zero-rated band for stamp duty means someone buying an average-priced home (£291,000) will now face a tax bill of £4,550 — a £2,500 hike overnight.

A Better Way: Proportional Property Tax

Instead of tweaking a broken system, Smith advocates for replacing it entirely with a proportional property tax (PPT) - exactly the kind of solution Fairer Share has championed.

He references proposals from Professor Tim Leunig of the London School of Economics, laid out in A Fairer Property Tax, a paper for the think tank Onward. Leunig, who was instrumental in designing the UK furlough scheme, calls for a tax based on the current value of a property; a transparent, economically rational model that would align tax liability with ability to pay.

Fairer Share’s version of the proposal is clear and deliverable: abolish council tax and stamp duty, and replace them with a proportional property tax levied at 0.48% of a home’s value. That would mean:

• A £200,000 property pays £960 a year

• No arbitrary bands or outdated valuations

• Taxation based on real property values, fairly and simply applied

Addressing Common Concerns

What about the “asset rich but cash poor”, like pensioners in expensive homes? Smith is clear that this challenge is solvable. Fairer Share has proposed a cap ensuring no existing owner pays more than £1,200 more than they would under council tax. Only new buyers would face the full rate - a fair, transitional measure that avoids forcing people out of homes while enabling long-term reform.

Other ideas include spreading the cost of stamp duty (or its replacement) over 20 years via government loans, as suggested by the Tony Blair Institute, or applying a cap to prevent eye-watering bills on high-value properties.

The Case for Change Is Building

As Smith notes, economists and think tanks from across the spectrum are aligned. Professor Charles Goodhart advocates a land value-based version of the tax. The Tony Blair Institute recommends a phased introduction. The 2011 Mirrlees Review — led by Nobel laureate Sir James Mirrlees — also called for replacing council tax and stamp duty with a more rational, unified system.

These are not fringe ideas. They are serious, evidence-based solutions to one of the most flawed parts of Britain’s tax system.

The Political Opportunity

As Smith concludes, any chancellor bold enough to fix this would earn the respect of experts and the gratitude of voters. Reform would be progressive, economically sound, and potentially revenue-raising - all while reducing distortions in the housing market.

Yet so far, there’s been silence from the Treasury. That’s why we must keep pushing.

You can read David Smith's full piece in The Times here.

by The Fairer Share Team

Why First-Time Buyers and Young Families Struggle to Get on the Property Ladder

For many first-time buyers and young families, owning a home feels further out of reach than ever. Over the past two decades, the average UK house price has surged from approximately £70,000 in 1998 to £224,000 in 2018, more than tripling in value. As of January 2025, the average house price stands at £267,200. This rapid increase has significantly outpaced wage growth, making homeownership increasingly unaffordable. In 2023, the average house price was 8.6 times the average annual disposable household income, up from 4.4 times in 1999.

These financial barriers have led to a decline in homeownership among young adults. In 2022–23, only 39% of individuals aged 25 to 34 owned their homes, a significant drop from 59% in 2000. This decline is particularly pronounced in urban areas like London, where only 26% of young residents own a home with a mortgage, compared to 36% outside the capital.

Even after securing a mortgage and purchasing a home, financial challenges persist. Ongoing expenses such as Council Tax, maintenance, and rising utility bills add to the financial strain, making it difficult for young homeowners to manage their budgets.​

With homeownership becoming increasingly difficult for young people, it's crucial to examine the factors hindering their ability to buy and own homes. Implementing policies that address these issues can help make homeownership more attainable and equitable for future generations.

The Barriers to Buying a First Home

Saving for a Deposit Takes Longer Than Ever

House prices have risen far faster than wages, making it increasingly difficult for young buyers to save enough for a deposit. In many parts of the country, buyers now need between £30,000 and £50,000 upfront just to secure a mortgage.

According to the Resolution Foundation, it now takes the average first-time buyer around 9 years to save for a deposit - and that's assuming they can save regularly. For many, homeownership is only possible with significant financial support from family, often dubbed the 'Bank of Mum and Dad'. In fact, more than half of all first-time buyers under 35 now rely on family help to get on the property ladder.

Meanwhile, rising rents are making it even harder for renters to save. With average rents hitting record highs, young people are often stuck in a cycle where they’re paying more each month in rent than they would on a mortgage - but can’t build up the deposit to break free.

Mortgage Affordability is a Growing Issue 

Even with a deposit, getting a mortgage is tougher than it used to be. Higher interest rates mean monthly repayments are more expensive, making lenders more cautious about approvals.  Many buyers are forced to take out longer mortgages (35-40 years) just to make payments manageable, increasing their overall debt.

First-Time Buyers Are Priced Out of Their Local Areas

Many young people find themselves pushed further away from where they grew up or work because local prices are too high. This means longer commutes, higher transport costs, and difficulty accessing family support for childcare. Some areas have seen a rise in second-home buyers and investors, driving up prices and pushing out locals.

The Hidden Costs of Homeownership

Once buyers secure a mortgage, they often underestimate the ongoing costs of owning a home.

These include:

• Council Tax - which can be surprisingly high, especially in lower-cost areas.
• Repairs and maintenance, which renters typically don’t have to worry about.
• Service charges in flats and leasehold properties, which can be an unexpected financial burden.

And we can’t forget Stamp Duty - a one-off cost paid upfront at the time of purchase. Unless they qualify for first-time buyer relief, many buyers still face thousands in additional charges just to complete the purchase. It’s another hurdle at a time when affordability is already stretched thin.

How Can We Make Homeownership Fairer for First-Time Buyers?

There’s no single fix, but policy changes could ease the financial strain on first-time buyers and young families, helping more people get on the property ladder.

One of the biggest hidden costs for homeowners is Council Tax - an outdated system that doesn’t fairly reflect property values. Many young buyers moving to affordable homes in lower-value areas end up paying disproportionately high Council Tax bills, which eat into their monthly budget.

And then there’s Stamp Duty, a one-off charge that adds thousands to the cost of buying a home. For buyers looking to move up the property ladder - especially growing families - this can be a major barrier.

Switching to a Proportional Property Tax (PPT) would make homeownership fairer by ensuring everyone pays the same percentage of their property’s actual value - not an outdated amount based on 1991 prices. It would also scrap Stamp Duty altogether, removing a major upfront cost for buyers.

This would mean:

• Lower annual bills for most first-time buyers and young families
• No Stamp Duty for anyone, at any stage of the ladder
• A tax system that reflects the true value of homes today
• More financial breathing room for those just starting out

For years, politicians have promised to help first-time buyers - but schemes like Help to Buy and shared ownership haven’t tackled the deeper issue: the cost of owning a home is unfairly high, especially for those just starting out.

A fairer tax system - like Proportional Property Tax - would not only ease the burden, but give a generation of would-be homeowners a fighting chance to get ahead.

If we want future generations to have a fair shot at homeownership, we need action now.
Join the movement for a modern, fair property tax system - because owning a home shouldn’t be a luxury, it should be an achievable goal for everyone.

Read more from Lord David Willetts here on why Council Tax reform is key to bridging the generational divide.

by The Fairer Share Team

Debunking the Myths: Common Misconceptions About Proportional Property Tax

When discussing tax reform, particularly a shift to Proportional Property Tax (PPT), misinformation can spread quickly. Some people assume it’s just another way to raise taxes, while others fear it could hurt homeowners. In reality, PPT is designed to be fairer, simpler, and more affordable than Council Tax.

Let’s break down some of the most common myths and set the record straight.

Myth 1: “PPT is Just Another Tax Increase”

Reality: PPT isn’t about raising more tax - it’s about taxing fairly. Under the current system, Council Tax is based on property valuations from 1991 - more than 30 years out of date. That means millions of people in modest homes are paying far more than their fair share, while those in high-value properties often pay less as a proportion of their home’s true value.

The PPT would replace Council Tax and Stamp Duty with a simple, transparent tax: 0.48% of a property’s current value. Nothing more, nothing less. It doesn’t raise more money overall - it’s revenue neutral - but it redistributes the burden more fairly across the country.

Under this fairer model, 77% of households would pay less than they do now, with average annual savings of £556. Families in lower and mid-value homes would benefit the most – while those in the highest-value properties would contribute more in line with the true value of their assets.

This isn’t about punishing success. It’s about modernising a broken system so that everyone pays their fair share based on what their property is actually worth today – not what it was worth in 1991.

Myth 2: “Homeowners Will Be Forced to Sell Their Homes”

Reality: Some worry that switching to a proportional system could push homeowners out of their properties. In fact, PPT is designed to reduce unfair financial pressure, not increase it.

Many pensioners and families currently struggle with Council Tax bills that are disproportionately high for their home’s value. PPT would create a fairer system where those in modest homes pay less, while wealthy homeowners pay their fair share.

Plus, there could be safeguards such as deferral schemes for pensioners and gradual phase-in periods to ensure no one faces sudden financial hardship.

Myth 3: “Landlords Will Just Pass the Costs Onto Renters”

Reality: While some landlords may pass on part of the cost, most renters live in lower-value properties - meaning they’ll still benefit overall.

Under the current system, renters are hit hard. Although Council Tax is technically a property tax, it’s tenants – not landlords – who pay it. This often means people renting modest homes are charged a higher effective tax rate than those living in much more expensive properties.

With a PPT, the responsibility for paying the tax would shift to the property owner – the landlord – not the tenant. While some of this cost may be reflected in rent over time, most rental properties are in lower-value bands. That means the overall tax bill on these properties would go down under PPT – and with it, the pressure to raise rents.

This shift would create a fairer, more transparent system. Landlords would pay tax based on what their property is actually worth, and renters would no longer carry the disproportionate burden of a broken Council Tax system.

Myth 4: “Council Tax Reform Isn’t a Priority Right Now”**

Reality: The cost-of-living crisis means people are struggling more than ever. Council Tax bills are rising across the country, but because the system is so outdated, the increases don’t affect everyone fairly.

Switching to PPT would immediately reduce tax bills for millions of households, providing much-needed financial relief without cutting local services.

Myth 5: “The Current System Works Fine”

Reality: The Council Tax system is fundamentally broken. A home in the North of England worth £100,000 might pay the same (or more) in tax than a London townhouse worth £1 million. That’s because Council Tax bands haven’t been updated since 1991, meaning people in cheaper homes are stuck overpaying while the wealthiest homeowners contribute far less than they should.

PPT would eliminate this outdated, unfair system and introduce a simpler, more transparent approach, where what you pay is directly tied to your home’s real value.

PPT isn’t about increasing taxes, it’s about fixing an unfair system that punishes ordinary families. By replacing Council Tax with a straightforward percentage-based tax, we can make homeownership and renting more affordable, fairer, and fit for the 21st century.

If you believe in a fairer tax system, support the campaign today! Sign up, spread the word, and help bring real change to the way we fund local services.  

by The Fairer Share Team

James’ Story: Why Council Tax is Pushing People to the Brink

We recently caught up with James, a retired 61-year-old from Preston, who has been living in his home since 2003. Over the years, James has watched his Council Tax bill skyrocket while struggling to see the benefits. His annual bill now stands at £2,100, his biggest expense, which he describes as a bigger financial strain than the energy crisis. Here's what James had to say during our chat.

"Council Tax is totally unfair"

James is deeply frustrated with the system. He moved from Luton, where he paid significantly less, and is angry at the huge regional disparities that make areas like Preston pay more while wealthier households contribute proportionally less. He also points out that Council Tax bands are still based on outdated 1991 valuations, meaning people are paying taxes that don’t reflect the true value of their homes today.

"Have I been overpaying?"

James has checked whether his home is in the correct Council Tax band, comparing it to other houses on his street. Most of the homes on his road are Band C, except for one mid-terrace house which is Band B. While his banding appears consistent, he still believes the entire system is flawed and punishes ordinary homeowners unfairly.

"Where is my money going?"

Despite paying thousands each year, James does not feel he is getting value for money. While he hasn’t personally noticed a decline in services, he believes a significant chunk of Council Tax is going towards council pensions rather than public services. He’s read that a quarter of Council Tax revenue goes into local authority pension schemes, leaving less for schools, policing, and local improvements.

"The rich get a better deal"

James finds it deeply unfair that wealthier households pay a lower share of their income in Council Tax than those on lower incomes. He has checked how much other areas pay and was shocked to find that Preston ranks high on the list of Council Tax burdens. For him, the current system punishes ordinary homeowners while protecting those with greater wealth.

"A Proportional Property Tax would halve my bill"

James is fully in favour of reform, believing that a Proportional Property Tax  would dramatically reduce his Council Tax bill and ease the financial strain on millions. He also supports the idea of scrapping Stamp Duty and believes the government should help older generations downsize more easily if they choose to.

"If nothing changes, there will be a revolt"

When asked what will happen if Council Tax continues to rise without reform, James doesn’t hold back: “More debt, more people struggling, and possibly even a revolt.” He feels that without intervention, more households will fall into Council Tax arrears, creating an unsustainable cycle of financial hardship.

"We need to speak out"

James wants others in similar positions to raise their voices. He has been involved in campaigning for winter fuel support with Age UK and believes that collective action can bring change. He also fully supports Fairer Share’s campaign for Council Tax reform, describing it as a crucial step towards levelling up.

For James, the North-South divide in taxation is unacceptable, and reforming Council Tax is essential for fairness and financial security. His message to the government is clear: “The current system is outdated and unfair - it’s time for a tax that reflects today’s reality, not the early ’90s.”

by The Fairer Share Team

Council Tax Debate in the House of Commons: Where Were the MPs?

Council Tax is outdated, unfair, and punishing those who can least afford it – yet Parliament was nearly EMPTY for this crucial debate!

In this video, we bring you yesterday’s House of Commons debate on Council Tax reform, where Hartlepool MP Jonathan Brash delivered a powerful speech calling for urgent change. Alongside him, Grahame Morris, Luke Myer, and other MPs made valid and compelling arguments highlighting the deep unfairness of the current system.

A huge thank you to Jonathan for his excellent speech and to all the MPs who contributed to this important discussion. It’s time to fix this broken system and ensure a fairer way for everyone. It was great to see Fairer Share mentioned too, with Jonathan highlighting the need for a Proportional Property Tax – this is progress.

Shocking Facts from the Debate:

• A Band A home in Westminster pays £648 a year, while in Hartlepool it’s £1,585 – more than double!
• The system is based on property values from 1991 – 34 years out of date!
• Council Tax in some areas takes 9% of median wages, while in Westminster it’s just 2%.
• £6 billion in Council Tax debt is already owed – the system is broken beyond repair.

So why was the chamber almost EMPTY?

Tax reform is long overdue – yet only a handful of MPs showed up to debate a fairer property tax. Millions face an outdated, unfair system, but Westminster seems asleep at the wheel. We need action, not apathy

Take action!

Email your MP here and ask why they didn’t take part in this crucial debate on Council Tax reform. Let them know this issue matters!

Sign the petition for a fairer tax system here.

by The Fairer Share Team

What Happens If you Can't Pay Your Council Tax? Your Rights & Options

With council tax bills rising again, more households are struggling to keep up with payments. Falling behind on council tax can be stressful, but it’s important to know your rights and what options are available to you.

What Happens If You Miss a Council Tax Payment?

First Reminder Notice

If you miss a payment, your local council will send you a reminder. You’ll usually have seven days to pay.

Second Reminder & Final Notice

If you miss another payment within the same year, you’ll get a second reminder. A third missed payment usually means you lose the right to pay in instalments, and the full annual bill becomes due.

Court Summons & Liability Order

If you don’t pay, the council can apply for a liability order from the magistrates’ court, giving them legal power to recover the debt.

How Councils Can Recover Unpaid Council Tax

Once a liability order is in place, councils can collect the unpaid amount in several ways:

• Deductions from Benefits or Wages -  If you receive Universal Credit, Employment Support Allowance, or other benefits, deductions can be taken directly. Your employer may also be ordered to take money from your wages.
• Bailiffs (Enforcement Agents) – If you don’t arrange a payment plan, the council may send bailiffs to recover the debt. This adds extra charges to what you owe.
• Charging Orders & Bankruptcy – In extreme cases, councils can secure the debt against your home or even apply for bankruptcy if you owe a large amount.

Your Rights: What Councils Can’t Do

• Sent to Prison – Prison for non-payment of Council Tax is a last resort, after all other attempts to recover the money have failed.

You won’t be imprisoned unless you wilfully refuse to pay despite having the means or are guilty of ‘culpable neglect’ (i.e. you could have paid but didn’t)

• Bailiffs Must Follow the Rules – They can’t enter your home by force, take essential items, or harass you.
• You Can Challenge Unfair Demands – If you think your bill is incorrect or your banding is wrong, you have the right to dispute it.

What to Do If You Can’t Afford Your Council Tax

• Contact Your Council Immediately – Many councils offer flexible payment plans or discounts for those in financial hardship.
• Check for Discounts & Exemptions – Single-person households, students, and low-income families may be eligible for reductions.
• Apply for Council Tax Support – Some councils offer schemes that reduce bills for people on low incomes.
• Seek Free Debt Advice – Charities like StepChange and Citizens Advice can help you manage your debt and negotiate with the council.

Time for Reform

The current council tax system is outdated and unfair, forcing many households into financial hardship. That’s why Fairer Share is campaigning for a Proportional Property Tax —a simpler, fairer alternative that ensures no one pays more than their fair share. Sign our petition here and help us fix this broken system.

by The Fairer Share Team

Mind the Mint: How a Small Hole Reveals Big Problems with Wealth Inequality

I recall wandering into our local WH Smiths to buy a packet of Polo mints for 4 pence in 1978 - a treat accessible to almost anyone. Fast forward to 2025, and the same packet costs around £1.75. While this might seem trivial, the story of Polo mints highlights a much deeper issue: the widening gap between incomes, the cost of living, and wealth inequality in the UK.

In 1978, the mean salary was £7,600 per year. At 4 pence per packet, it took less than 1 minute of work for the average worker to afford a pack of Polo mints. By 2025, with the mean salary rising to £37,430 annually, it now takes over 5 minutes of work to buy the same packet. This shift underscores how inflation and stagnating wages disproportionately impact low- and middle-income families. 

Why Have Polo Mints Become So Expensive?

Despite advancements in manufacturing efficiency, the price of everyday items has risen sharply due to inflation, rising raw material costs, and supply chain challenges. For low-income families, these price increases make essentials less affordable, compounding financial stress.

 The Bigger Picture: Inequality in Action

The rising cost of Polo mints is symbolic of broader economic challenges:

1. Stagnant Wage Growth: Real wages for most workers have not kept up with the cost of living, leaving less room for savings or discretionary spending.
2. Regressive Inflation Impact: Inflation hits everyday items harder, disproportionately affecting those on lower incomes while luxury goods remain relatively stable.
3. Wealth Concentration: The wealthiest 10% of households own nearly half of the country’s wealth, while the bottom 50% struggle to afford basic necessities. This imbalance limits social mobility and economic growth.
4. Unfair Property Taxation: In 1978, the mean household paid £70 annually in local Rates, equivalent to 2 days of work. By 2024, the mean Council Tax bill had risen to £1,966, requiring 14 days of work. This regressive system burdens those in lower-value properties while wealthier homeowners pay a lower effective tax rate.

 A Solution: Proportional Property Tax (PPT)

Fairer Share’s proposed Proportional Property Tax (PPT) offers a solution to these inequities. PPT would replace Council Tax and Stamp Duty with a system based on up-to-date property values. Key benefits include:

• Lower Bills for Millions: 76% of households would see a reduction in property tax bills, saving families an average of £550 annually.
• Fairness for All: Taxing properties proportionally ensures wealthier homeowners pay their fair share, reducing the burden on lower-value properties.
• Boosting Mobility: Abolishing Stamp Duty would make it easier for people to move, supporting economic flexibility.

While PPT will not make Polo mints any cheaper, it would leave more money in the pockets of low- and middle-income families, enabling them to enjoy small pleasures while easing financial pressure.

 The Social Consequences

Rising costs of everyday items, coupled with stagnant wages and regressive taxes, create a toxic cycle for low- and middle-income families. Over time, these micro-sacrifices erode quality of life and deepen economic divides. Meanwhile, the wealthiest continue to benefit from policies that favour asset accumulation, fostering resentment and social discontent.

 What Can Be Done?

Addressing these challenges requires bold action:

1. Fairer Tax Policies: Implement progressive reforms like PPT to ease the burden on ordinary families.
2. Targeted Inflation Support: Control the cost of essentials to protect vulnerable households.
3. Wealth Redistribution: Introduce fairer taxes on unearned income and inheritance to reduce inequality.
4. Strengthening Wages: Ensure earnings keep pace with living costs.

 The Time for Change Is Now

The story of Polo mints is a vivid reminder that while economic growth has advanced, its benefits have not been shared equitably. By adopting solutions like the Proportional Property Tax, the UK can take a significant step toward reducing inequality and supporting families. Now is the time to act, ensuring that everyone can enjoy the small but meaningful pleasures in life.

By Andrew Dixon OBE, Chairman of Fairer Share

by The Fairer Share Team