Labour MPs urge Chancellor to act in upcoming Budget with bold tax reform

15 October 2025

Luke Myer MP has joined sixteen other Labour MPs in signing a letter to the Chancellor calling for Council Tax to be abolished, and replaced with a fairer proportional property tax. The intervention comes just weeks before the Budget, with growing pressure on the Government to fix what MPs have described as a deeply regressive and increasingly indefensible system.

Luke has consistently called for council tax reform, speaking in Parliament earlier in the year about how the current model is “fundamentally broken”. 

The Proportional Property Tax would introduce a simple flat rate of 0.48 percent on the current value of a property, scrapping Council Tax, Stamp Duty and the Bedroom Tax. Unlike the current system, the tax would be paid by property owners rather than tenants. Renters would no longer face Council Tax bills, and struggling homeowners could defer payments until they can afford it or sell the property.

Under the proposals, 77% of households, around eighteen million, would pay less than they currently do, with average savings of £556 pounds. Outside London, communities would see a combined £6.5 billion boost, with more disposable income spent locally rather than extracted through outdated tax bands from 1991. The model would also generate surplus revenue for the Treasury.

Luke Myer MP said,
“Council Tax is outdated and unfair. It hits families in modest homes in areas like ours harder than those living in million pound properties in the South East. We need a modern system that reflects today’s economy and puts more money back into people’s pockets. The proportional property tax is a common-sense alternative. It is time to scrap council tax and replace it with something fair.”