Council tax is the new poll tax. It’s time for reform

A poll tax protest, Hackney, March 1990. Image: Getty.

Rummage around in the “too difficult to touch box” of policy issues and somewhere near the bottom you’ll find a slip marked “council tax reform”. But as that tax is increasingly becoming as unfair as the poll tax it replaced, politicians need to be bold and reform this failing tax. Here’s why.

The poll tax was a political disaster which is widely credited with precipitating the downfall of Margaret Thatcher as Prime Minister. In response to the failed poll tax, the current council tax system was introduced in 1993 as a pragmatic fudge. Now politicians fear touching the issue again.

But council tax increasingly resembles the unpopular poll tax which it replaced. A new report by the Institute for Public Policy Research (IPPR) out yesterday highlights how this system of taxation is failing.

It is increasingly a regressive tax, with those living in the lowest-value homes paying a higher proportion of council tax with regard to property value, than those living in the highest value homes. A household in a Band A property in London would on average pay nearly five times what a Band H household would pay as a proportion of property value.

The council tax system also takes too little account of people’s ability to pay and punishes the poorest. The devolution of council tax benefit in 2013, together with the cut in the funding provided for it, means that people on the very lowest incomes are paying council tax for the first time since the poll tax – and bills are rising.

IPPR research found that the burden of council tax on London’s poorest households is more than six times greater than those on the highest incomes – and that was before the latest round of increases. At the same time, the number of those in arrears and facing prosecution has also dramatically risen.


Furthermore, the current system is an increasingly unsustainable source of local government finance, not least due to its regressive features, discounts and exemptions. Meanwhile, upward pressures on local government spending are rising.

Council tax, like the poll tax before it, is punishing those on the lowest incomes, and it’s time for an overhaul. There is public appetite for fundamental reform and politicians should no longer ignore the issue. Council tax needs to be reformed to create a more progressive, fair and sustainable system.

In our report focused on the system in London, we propose that the first step should be to devolve council tax to London’s government, as also proposed by the London Finance Commission. London’s unique housing market and strong sub-national governance make it well suited to a pilot devolution deal which could later be rolled out across the country. A reformed system needs a sub-national approach, rather than the current overly centralised one.

Second, action should be taken urgently to protect those on low incomes. A capital-wide council tax benefit system is needed to support London’s most vulnerable households. This will ensure no minimum payment is required of those on the lowest incomes and restore eligibility for support to at least their pre-2013 levels.

Third, in the long-term council tax should be replaced with an annual flat-rate tax proportional to present day property values. This should be levied on owners rather than occupants. A rate of 0.25 per cent would raise the same funds for London as the current system, but 80 per cent of households would benefit from paying lower tax.

Any reforms should also be accompanied by an improvement in public services to ensure the reform commands political and public support.

Reform of council tax will not be easy: there’s a reason why it has remained unreformed in England for nearly three decades. But it’s time that politicians abolished this failing tax, just like the poll tax before it.

Luke Murphy is associate director for energy, climate, housing and infrastructure at the Institute for Public Policy Research.

 
 
 
 

The IPPC report on the melting ice caps makes for terrifying reading

A Greeland iceberg, 2007. Image: Getty.

Earlier this year, the Intergovernmental Panel on Climate Change (IPCC) – the UN body responsible for communicating the science of climate breakdown – released its long-awaited Special Report on the Ocean and Cryosphere in a Changing Climate.

Based on almost 7,000 peer-reviewed research articles, the report is a cutting-edge crash course in how human-caused climate breakdown is changing our ice and oceans and what it means for humanity and the living planet. In a nutshell, the news isn’t good.

Cryosphere in decline

Most of us rarely come into contact with the cryosphere, but it is a critical part of our climate system. The term refers to the frozen parts of our planet – the great ice sheets of Greenland and Antarctica, the icebergs that break off and drift in the oceans, the glaciers on our high mountain ranges, our winter snow, the ice on lakes and the polar oceans, and the frozen ground in much of the Arctic landscape called permafrost.

The cryosphere is shrinking. Snow cover is reducing, glaciers and ice sheets are melting and permafrost is thawing. We’ve known this for most of my 25-year career, but the report highlights that melting is accelerating, with potentially disastrous consequences for humanity and marine and high mountain ecosystems.

At the moment, we’re on track to lose more than half of all the permafrost by the end of the century. Thousands of roads and buildings sit on this frozen soil – and their foundations are slowly transitioning to mud. Permafrost also stores almost twice the amount of carbon as is present in the atmosphere. While increased plant growth may be able to offset some of the release of carbon from newly thawed soils, much will be released to the atmosphere, significantly accelerating the pace of global heating.

Sea ice is declining rapidly, and an ice-free Arctic ocean will become a regular summer occurrence as things stand. Indigenous peoples who live in the Arctic are already having to change how they hunt and travel, and some coastal communities are already planning for relocation. Populations of seals, walruses, polar bears, whales and other mammals and sea birds who depend on the ice may crash if sea ice is regularly absent. And as water in its bright-white solid form is much more effective at reflecting heat from the sun, its rapid loss is also accelerating global heating.

Glaciers are also melting. If emissions continue on their current trajectory, smaller glaciers will shrink by more than 80 per cent by the end of the century. This retreat will place increasing strain on the hundreds of millions of people globally who rely on glaciers for water, agriculture, and power. Dangerous landslides, avalanches, rockfalls and floods will become increasingly normal in mountain areas.


Rising oceans, rising problems

All this melting ice means that sea levels are rising. While seas rose globally by around 15cm during the 20th century, they’re now rising more than twice as fast –- and this rate is accelerating.

Thanks to research from myself and others, we now better understand how Antarctica and Greenland’s ice sheets interact with the oceans. As a result, the latest report has upgraded its long-term estimates for how much sea level is expected to rise. Uncertainties still remain, but we’re headed for a rise of between 60 and 110cm by 2100.

Of course, sea level isn’t static. Intense rainfall and cyclones – themselves exacerbated by climate breakdown – can cause water to surge metres above the normal level. The IPCC’s report is very clear: these extreme storm surges we used to expect once per century will now be expected every year by mid-century. In addition to rapidly curbing emissions, we must invest millions to protect at-risk coastal and low-lying areas from flooding and loss of life.

Ocean ecosystems

Up to now, the ocean has taken up more than 90 per cent of the excess heat in the global climate system. Warming to date has already reduced the mixing between water layers and, as a consequence, has reduced the supply of oxygen and nutrients for marine life. By 2100 the ocean will take up five to seven times more heat than it has done in the past 50 years if we don’t change our emissions trajectory. Marine heatwaves are also projected to be more intense, last longer and occur 50 times more often. To top it off, the ocean is becoming more acidic as it continues to absorb a proportion of the carbon dioxide we emit.

Collectively, these pressures place marine life across the globe under unprecedented threat. Some species may move to new waters, but others less able to adapt will decline or even die out. This could cause major problems for communities that depend on local seafood. As it stands, coral reefs – beautiful ecosystems that support thousands of species – will be nearly totally wiped out by the end of the century.

Between the lines

While the document makes some striking statements, it is actually relatively conservative with its conclusions – perhaps because it had to be approved by the 195 nations that ratify the IPCC’s reports. Right now, I would expect that sea level rise and ice melt will occur faster than the report predicts. Ten years ago, I might have said the opposite. But the latest science is painting an increasingly grave picture for the future of our oceans and cryosphere – particularly if we carry on with “business as usual”.

The difference between 1.5°C and 2°C of heating is especially important for the icy poles, which warm much faster than the global average. At 1.5°C of warming, the probability of an ice-free September in the Arctic ocean is one in 100. But at 2°C, we’d expect to see this happening about one-third of the time. Rising sea levels, ocean warming and acidification, melting glaciers, and permafrost also will also happen faster – and with it, the risks to humanity and the living planet increase. It’s up to us and the leaders we choose to stem the rising tide of climate and ecological breakdown.

Mark Brandon, Professor of Polar Oceanography, The Open University.

This article is republished from The Conversation under a Creative Commons license. Read the original article.