The Campaign Against Council Tax: Why Reform Remains Elusive in 2026

Over the years, several political parties have proposed replacing council tax, but none have followed through. The Liberal Democrats ran their \”Axe the Tax\” campaign in the 2000s and 2010s, calling for a local income tax that would be collected alongside national income tax. Their argument was straightforward: a system based on income would be fairer than one based on property values, and it would cost less to administer.

The SNP in Scotland pledged to replace council tax with a local income tax in 2007, and the party continued to press for alternatives under Nicola Sturgeon’s leadership. A commission was set up to explore options, but the practical difficulties of implementation meant that council tax survived largely unchanged. Scotland did introduce a modified banding multiplier in 2017 to make higher bands pay more, but this was a tweak rather than the wholesale replacement that campaigners wanted.

Labour has periodically flirted with council tax reform, including a proposed mansion tax on properties worth over \u00a32 million. That idea was eventually shelved. In 2026, the Labour government has focused on other fiscal priorities, and a full council tax revaluation or replacement remains off the table for now.

The Conservative Party, during its time in government, consistently resisted revaluation, arguing it would cause upheaval and create \”winners and losers\” among homeowners. This political caution has been shared by all major parties: nobody wants to be the government that sends millions of households a bigger bill, even if the current system is widely regarded as unfair.

While the political debate continues, millions of households are struggling with the council tax system as it stands. According to government data, council tax arrears have risen steadily since the localisation of council tax support in 2013. Before that change, low-income households received up to 100% council tax benefit through a national scheme. Afterwards, councils were given reduced funding and told to design their own local schemes, with most requiring even the poorest residents to pay at least some council tax.

The result has been predictable: more people falling behind, more liability orders being issued by magistrates’ courts, and more enforcement action by bailiffs. Council tax is now the most common debt that people contact StepChange about, overtaking credit cards and personal loans.

For households already stretched by rising energy costs, food prices, and mortgage or rent increases, an above-inflation council tax rise can be the tipping point. And unlike many other debts, councils have powerful enforcement tools at their disposal, including the ability to deduct payments directly from wages or benefits, and to send enforcement agents (bailiffs) to your home.

Despite decades of campaigning, council tax reform remains unlikely in the near term. The political risks are simply too high. Any revaluation would create millions of \”losers\” who see their bills go up, and no government wants to face that backlash. Meanwhile, councils are increasingly reliant on council tax revenue to fund essential services, having seen their central government grants cut dramatically since 2010.

The most likely path forward is incremental change: modest adjustments to bands, small increases in council tax support funding, and continued reliance on the existing system with its known flaws. For campaigners who want to see council tax replaced entirely, this is deeply frustrating, but it reflects the political reality.

What has changed, however, is public awareness. More people than ever understand that council tax is regressive, outdated, and in need of reform. Campaigns by the Fairer Share movement, Liberal Democrats, and various think tanks have kept the issue in public debate, even if they have not yet achieved legislative change.