Delivering a Fairer Council Tax System

Written By Molly Hutchinson

Since first being elected in 2019, and again in 2024, I have consistently campaigned for a council tax system that is fair, proportionate, and rooted in dignity. For too long, the system has failed those it is meant to serve, punishing vulnerability while doing little to improve collection.

I welcomed the decision by Stockport Council to adopt the Citizens Advice Council Tax Protocol in 2024. This was a significant victory for residents and for campaigners who have pushed for a more humane approach to council tax collection.

I wrote to the Council in September 2022 and again in July 2023 to highlight the independent data showing that the use of bailiffs does not increase collection rates and, instead, aggressive enforcement and excessive fees trap vulnerable people in deeper debt. At the height of the cost-of-living crisis, such practices were not only ineffective, they were hard to defend. This outcome followed nearly two years of sustained pressure and I was proud to lead campaigning efforts on this issue.

Through parliamentary speeches and a series of Written Parliamentary Questions, I challenged the previous Conservative Government to confront the reality of a system that too often treats those who cannot pay the same as those who will not.

After fourteen years of failure and austerity by the Conservatives and the coalition government with the Liberal Democrats, a Labour Government is now delivering the change that communities have long demanded.

Council tax remains essential to funding frontline services, but the system itself has been outdated since its introduction in 1993. It has not kept pace with how people live, work, or manage their finances. British way of life has changed in the last three decades. 

The Labour Government is changing that:

  • Stability for local governmentCouncils are being backed with over £5.6 billion in additional investment over the next three years, alongside the first multi-year settlement in a decade.

  • Making payment manageableHouseholds will be able to pay over 12 months as standard, providing greater flexibility and reducing financial pressure.

  • Guaranteeing earlier supportCouncils will be required to provide clear and consistent information, ensuring that people can access help before debts spiral.

  • Ending punitive enforcementThe current system escalates too quickly and too harshly. Labour is putting an end to this approach:

    • More time will be given before full-year liability is triggered.

    • Councils will be expected to engage constructively with residents.

    • Liability order costs will be capped at £100.

  • Restoring fairness and humanityEnforcement will be proportionate, targeting deliberate avoidance while protecting those in genuine hardship.

  • Modernising a broken systemOutdated and stigmatising terminology, including the “Severely Mentally Impaired” disregard, will be reformed to reflect a more respectful and accessible system.

This is the difference that Labour in power makes. Where vulnerable people were ignored, they are now being protected. Where councils were left to struggle, they are now being supported.

There is a lot more to do, but the direction is clear: a council tax system that is fairer, more transparent, and firmly on the side of working people.

I continue to push for more funding from the Labour government in Westminster for Stockport Council. I represent many parts of Stockport that need more investment and I want to see every part of our town benefitting from high-quality, reliable public services.

I would like to thank Citizens Advice Stockport as well as Debt Justice for all of their work on this issue, and for supporting people in Stockport and across Britain who are struggling with the council tax system.

If you live in Stockport constituency, and are struggling with council debt, please contact my office (including your full name and address), and I will do my best to support you by making representations to Stockport Council. My email address is navendu.mishra.mp@parliament.uk 

Notes - 

Molly Hutchinson
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