Source · Select Committees · Housing, Communities and Local Government Committee

Recommendation 42

42 Rejected

Begin overhauling or replacing council tax, clarifying its purpose, impact, and fairness.

Recommendation
The Government should begin the process of overhauling or replacing council tax. This should look at options for a significant reform of local government funding, which could include replacing council tax. Whatever form of taxation is eventually adopted, the Government must clearly set out the tax’s purpose, its economic impact, and its fairness. (Recommendation, Paragraph 158)
Government Response Summary
The government notes the recommendation to reform or replace council tax but provides no commitment to begin such a process, stating that tax policy decisions are made by the Chancellor at fiscal events.
Government Response Rejected
HM Government Rejected
The Government notes the recommendation to reform or replace council tax as part of a wider review of local government funding. The government keeps all tax policy under review and the Chancellor makes tax policy decisions at fiscal events.