At the City Council meeting on 26th March Cllr Marjory Bisset described the council tax system as unfair, out of date and badly in need of reform.
The council tax system categorises properties into property value bands from A-H, based on 1991 valuations. despite significant changes to property values over the last three decades. Worcester Green Party argues that the current system disproportionately affects less well off households while failing to adequately fund local services. Concerns about the council tax system have been made clear by Birmingham City Council’s recent approval of a 20% rise in council tax over the next 2 years.
Councillor Tor Pingree says “While the average person in the UK pays 0.2 per cent of their income on council tax, for some in The Midlands or further north, the burden can be 1% or higher. Meanwhile, some in Westminster are paying just 0.02 per cent. This unfair tax system needs to change”.
Councillor Marjory Bisset spoke on the motion saying:
“I favour replacing council tax by a proportional property tax, set at a fixed proportion, say 0.4%, of a home’s value. The Institute for Fiscal Studies has estimated that fully 70% of households in England would pay less under such a system. The richest 10% of households would pay an additional £750 per year.”