UK Launches Landmark Council Tax Consultation Affecting Millions

The UK government, led by the Labour Party, has launched a major consultation to reform the Council Tax system, aiming to make it fairer, more transparent, and easier to manage. Key proposals include modernizing billing to a more manageable 12-month cycle, overhauling debt collection practices to prevent aggressive tactics such as demanding full payment after a single missed installment, and easing rules to challenge a property's tax band, which has not been revalued since 1991. Local councils like Barnet and North Tyneside are also reviewing their collection and support schemes to balance efficient tax collection with sensitivity to residents facing financial hardship amid the cost-of-living crisis. In Derby and Derbyshire, calls for reform emphasize that outdated property bands create unfairness, with lower-income households paying a higher proportion of their income in tax, leading to a push for revaluation to better reflect current property values and support public services. Overall, these initiatives seek to build a Council Tax system that supports vulnerable taxpayers while ensuring councils can fund essential services effectively.