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Council Tax Debt Collection

Volume 783: debated on Monday 13 April 2026

9. What assessment his Department has made of the potential impact of council tax debt collection practices on households in financial difficulty. (908613)

Because of the inconsistent and disproportionate practices observed, the Government have consulted on modernising and improving the administration of council tax, including its collection, and we will publish our response shortly.

Working with the charity StepChange, we have seen that some councils are too often moving too quickly towards bailiff enforcement action. Would the Minister consider issuing best practice to councils to ensure that vulnerable households are supported instead of too often being pushed into further financial misery by overly aggressive enforcement action?

I thank my hon. Friend for raising this issue on the Floor of the House and thank StepChange, through him, for its work. As I mentioned, we will have more to say in this area shortly, but as he will know, the Ministry of Justice is also involved in the issues that he mentioned, so I will work with Ministers in that Department, too.

Council tax is widely acknowledged to be a deeply regressive and unfair tax based on property values that are decades out of date, and the poorest households pay a much larger proportion of their income in council tax than the wealthiest. Rather than consulting just on better ways to collect it, will the Minister instead commit to review and replace this outdated and unfair tax with a system of taxation that is fairer and based on property values?

I thank the hon. Lady for raising this issue. As I have said, we will have more to say on this shortly, but when it comes to fairness, she will know that the Chancellor introduced a new charge for the highest-value properties, showing that this Labour Government are prepared to act when it comes to fairness.

Maximising rises in council tax underpins this Government’s entire approach to council finance. The Minister has admitted that no assessment has been done of the impact that this has on the cost of living for British households. As the Government send in the bailiffs to support their council tax maximisation strategy, will she assure the House that the Prime Minister has considered the impact of these huge council tax rises on working households?

I think that is a little bit rich given what we all lived through over the past 14 years. I say to the hon. Gentleman that, on average, Tory councils cost people more. I know that the best way we will ensure that council finances recover from the period of Tory austerity is to improve services, stop paying the cost of failure and help deal with the cost of living crisis.