REFNATION
GovernanceNationalClosed · Final

Should council tax be replaced by income and inheritance tax rises to maintain current local funding?

Yes 27%No 73%367 votes cast

Council tax provides around 46% of local authority funding in England, with the rest from government grants and business rates. The 2026/27 local government finance settlement distributes £83.5 billion to councils using updated need-based formulas, but many authorities plan tax rises and spending cuts to balance budgets. Proposals to replace council tax with other taxes have focused on property or local income taxes rather than national rises in income and inheritance tax.

Jump to opinions· 13

Council tax survived a nearly three-to-one rejection of replacing it with rises in income and inheritance tax, but this was less a defence of the existing system than a refusal of the proposed alternative. The room was united more readily against national taxation than behind council tax itself.

The winning side’s strongest argument was a fear of an ever-expanding tax base: the floor’s most-respected No case warned that “we will run out of people to punitively tax”. Other No voices called inheritance tax “a stealth tax”, objected to government waste and argued that working and saving households would bear too much of the burden.

The Yes case was thinly represented, but its central criticism was direct: “Council tax is regressive and valuations badly done.” The other contribution, “Bring back the poll tax”, was a starkly different intervention; the two sides largely talked past each other, with Yes attacking the defects of council tax while No rejected the taxes offered in its place.

Several No voters wanted council tax replaced eventually, just not by national income and inheritance tax. One called that proposal “the wrong fix”, favouring property or land-value taxation; another said council tax “keeps a link between local services and local contribution”, while separate voices pointed towards locally raised income tax or taking care provision out of council hands.

The verdict was No to this replacement, not an enthusiastic endorsement of what currently stands.

LeftCentreRight
27%
Yes · 98 votes
73%
No · 269 votes
Yes No
By gender
Male
29/71
Female
19/81
By age
16–24
22/78
25–34
25/75
35–44
30/70
45–54
20/80
55–64
32/68
65+
23/77
By political leaning
H. Left
60/40
Left
55/45
C. Left
22/78
Centre
17/83
C. Right
29/71
Right
15/85
H. Right
3/97
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Debate

13 Opinions

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The Bellwether
Voted noLeft

Can't see this being a good idea, inheritance tax is enough, income tax varies too much, and we all get the same service. Bringing back the Poll tax? No thank you. Our Rates, as it was back then, doubled, the service we got did not improve. Council tax at present varies, because of circumstances, one person; on benefits; house size; if we have children or not we still contribute to education; and so on. Leave things as they are.

The Market-State Traditionalist
Voted noRight

No. I might be better off under income and inheritance tax rises, but it isn’t about me. Council tax keeps a link between local services and local contribution. Replacing it with national taxes penalises those who work, save and build, and rewards those who haven’t. People already pay what they can afford. Accountability should stay local, not dissolve into central redistribution.

The Unifier
Voted noRight

I don’t think it should be income tax and inheritance tax that replaces it. I liked Burnham’s idea that it should be based on the value/percentage of the property.

Estella· 242
The Carbon-Sceptic Disciplinarian
Voted noHard Right

I’m just worried that we will run out of people to punitively tax to support a welfare system which appears out of control. I also feel that certain parties are weaponising the wealth people work hard for - and that some sections of society escape paying .

Glasses· 445
The Public-Order Traditionalist
Voted noRight

I do believe the council shouldn't be responsible for care either age related or children. This would stop postcode lottery of care and council tax wouldn't have to increase for years with money saved

Fletch· 213
The Armed Social Contract
Voted noRight

Inheritance tax is a stealth tax as is taxation on savings but earnings are fair game unless you are an employer

The Constitutional Dissenter
Voted noRight

My problem is, I don't trust the mechanic holding the spanner who says he can make my car stop banging. I would rather let it bang...

JohnnyBoy· 232
The Administrative Absolutist
Voted noHard Right

We are taxed too heavily as it is. When the government & civil servants are properly held to account for the £Billions they waste on failed Ccaoiral projects £100Billions- , the departments cannot have their accounts signed off due to fraud & recent PMs money launder £Billions to Ukraine & other boondoggles & nobody is demoted sacked prosecuted or jailed they have no right to ask for any more. We have a crisis of spending not income.

The Order-and-Restraint Moderate
Voted noCentre Right

Inherited money is a gift from parents so like us we never earned more than £30000 and we will leave a house worth £300000 to our 2 kids. The ultra rich won’t be harmed by inheritance tax but the likes of us will!

Church15· 115
The Constitutional Free-Marketeer
Voted noRight

Personally, I believe council tax needs to be replaced with a new system at the local level rather than national level. I wouldn’t mind local authorities being able to levy their own income tax. The Scottish and Welsh parliaments are able to levy a small percentage of income tax.