Scotland has a chance to make Council Tax fairer – it must not miss it

By Andrew Dixon, Chairman, Fairer Share

Tax Justice Scotland is seeking to promote a better conversation on tax policy. As such, the views expressed in this blog are those of the author and do not necessarily reflect the views of Tax Justice Scotland and its diverse supporters.

That concern is echoed across the UK. Senior political figures — including Andy Burnham — have recognised that Council Tax is highly regressive and that property taxation needs fundamental reform. But in Scotland, the responsibility for local tax reform lies here: with the Scottish Government and Scottish Parliament.

That is why more than 60,000 people have now backed a UK Parliament petition calling for a full independent review of Council Tax and Stamp Duty. The petition is directed at the UK Government, and rightly focuses on the powers it holds. But in Scotland, responsibility for local taxation sits with the Scottish Parliament and Scottish Government.

Wherever the powers sit, those who hold them now need to use them. Council Tax is still based on property values from the early 1990s. Since then, Scotland’s housing market has changed beyond recognition. The result is a system that too often asks people in lower-value homes to pay more as a share of property value, while those in the highest-value homes pay proportionately less. It is hard to defend, and harder still to justify leaving untouched.

Support runs across the political divide

The Scottish Government has acknowledged the need for reform. The SNP’s own manifesto said: “We have taken steps to make the application of Council Tax, as the tax for local service provision, fairer and more progressive than the system we inherited. The future of local tax reform is one that requires consensus, and we will set a high priority for the next parliament of seeking early cross-party agreement on reform.”

That commitment is welcome. But Scotland has heard commitments before. The test now is whether consensus becomes a route to action, rather than another reason for delay.

There are grounds for optimism. Recent debate in the Scottish Parliament suggests that support for reform now stretches across a strong parliamentary majority. Scottish Labour’s Michael Marra has said Scottish Labour, “also wants to see immediate action on Council Tax reform.” And Scottish Liberal Democrat Willie Rennie put it plainly: “Council Tax reform is long overdue.”

The Scottish Greens have gone further, committing in their manifesto to “finally scrapping the Council Tax” and replacing it with “a Residential Property Tax (RPT) based on the value of the property”. Whether or not others support that specific model, it represents a clear, concrete commitment to replacing the current system.

Wider momentum is building too, with the Scottish Trades Union Congress endorsing a proportional property tax, based on updated valuations. Its research argued reforms could raise hundreds of millions in additional revenue, and rightly noted that the currently planned surcharge on high-value homes is no “substitute for the wholesale, systemic reform” needed. Tax Justice Scotland polling shows five times more Scots back Council Tax reform than oppose it.

Taken together with the SNP’s manifesto commitment to seek early cross-party agreement, all this should create the conditions for progress.

The Scottish Government must seize the moment

But progress will not happen automatically. It requires political leadership from the Scottish Government, serious engagement across parties, and a clear timetable for change.

This is not about one parliament passing responsibility to another. It is about recognising that the unfairness of Council Tax is visible across the UK, while the solutions must be delivered by the governments and parliaments that hold the relevant powers.

In Scotland, those powers are here.

Fairer Share believes that property taxation should be modern, fair and based on the realities of today’s housing market — not the values of a generation ago. We need to protect those on low incomes, support stable funding for local services, and ensure that those with the greatest housing wealth contribute a fairer share.

The current moment should not be wasted. The Scottish Government has consulted. Parties have spoken. Civil society has made the case. The public increasingly understands that the system is not working.

The UK petition is one expression of that growing demand for change. People in Scotland can sign it to show that Council Tax reform is not a niche concern, but part of a wider call for fairer property taxation across the UK.

Sign the petition here: https://petition.parliament.uk/petitions/754331

But the message to Scotland’s political leaders is even more direct: the power to reform Council Tax in Scotland lies in Scotland.

The opportunity is there. The parliamentary majority appears to be there. The evidence has been built over many years. What Scotland needs now is leadership — and a clear timetable for reform.

Anything less risks turning a rare moment of consensus into another missed opportunity.