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If Rachel Reeves is serious about reform, she should fix a steely eye on council tax

The Observer

|

August 24, 2025

The levy on our homes has become antiquated, outrageously unjust and manifestly absurd. It's in dire need of modernisation

- Andrew Rawnsley

he ripest candidate for reform is council tax, the levy that helps finance local authorities.

e need to update Benjamin Franklin. Nothing is certain except death, taxes and relentless yammering about which ones Rachel Reeves will hike in the autumn. The chancellor has not yet set the date of her next budget, but it is treated as nailed on that she will be coming for more. Cue a cascade of conjecture about where she is going to raise the money.

This is unhelpful to everyone except journalists with airtime and column inches to fill and opposition leaders with voters to scare. Endless budget speculation spreads uncertainty, saps confidence and spooks the public. I think it likely that Ms Reeves will introduce higher taxes on bookmakers, a move that speaks to the puritanical streak in Labour's soul and has been pushed by Gordon Brown. I'm confident there's no chance that she will establish a wealth tax. While the idea is very popular among Labour members, it is regarded as nightmarishly unworkable by the Treasury.

Truth to tell, there is no one, including the chancellor herself, who knows the precise shape of what will be in a budget that won't materialise until the weather is much colder. Even if ministers did know, they can't rule out this tax increase or that one without opening the flood gates to questions about all the other ones being floated. So they have to squirm and stonewall while voters have their spines shivered about mooted "tax grabs", many of which will ultimately never see the light of day.

WEITERE GESCHICHTEN VON The Observer

The Observer

Can a biopic of the Boss be anything other than blinded by his light?

Heavens above, not another biopic. I'm still in recovery from A Complete Unknown, James Mangold’s attempted unveiling of The Mysterious Soul of Bob Dylan starring Timothy Someone-or-other.

time to read

2 mins

October 26, 2025

The Observer

The Observer

Reeves is still only getting part of the Brexit message

The financial markets, and much of the media, seem obsessed by the level of public sector debt and borrowing.

time to read

3 mins

October 26, 2025

The Observer

The Observer

The anonymous Twitter troll account set up to discredit Virginia Giuffre

The online attacks came thick and fast, all 479 of them designed to discredit the accuser of Epstein, Maxwell and Prince Andrew.

time to read

5 mins

October 26, 2025

The Observer

The Observer

Badenoch and Farage should stop playground politics of making rules they can't keep

Do unto others as you would have them do unto you. That's the golden rule I remember being taught as a child in primary school. Not a bad guiding principle.

time to read

3 mins

October 26, 2025

The Observer

The Observer

Museums are in the pink while corporate sponsors remain shy

By embracing private philanthropy, the sector has received record sums, however businesses are feeling burnt by protests, write Nicole Fan and Stephen Armstrong

time to read

3 mins

October 26, 2025

The Observer

The Observer

'Democrat saviour' or 'commie bastard': Mamdani, would-be king of New York

The 34-year-old socialist set to become the Big Apple's first Muslim mayor may be the left's greatest hope - and biggest threat. Hugh Tomlinson joins the new star of US politics on the campaign trail

time to read

8 mins

October 26, 2025

The Observer

Use Russia's money

Europe has missed its chance to hit Putin's finances

time to read

2 mins

October 26, 2025

The Observer

Struggling 'clean food' brands dig in for long haul

Autumn, season of mists and mellow fruitfulness, wrote Keats. Not if you're in the plant-based food industry. Sales at major brands, including Oatly and Beyond Meat, are stalling.

time to read

2 mins

October 26, 2025

The Observer

Reeves mission: to build a European Silicon Valley centred on 'golden triangle'

Brexit is costing the UK 80bn a year in lost taxes, hitting output by up to 8% and investment by more than twice as much. The chancellor has her work cut out

time to read

5 mins

October 26, 2025

The Observer

The Observer

Academics sign letter of support after ‘vile’ abuse of Israeli professor

Tom Watson, Margaret Hodge, Michael Grade, Prof Andrew Roberts and hundreds of academics are among more than 1,600 signatories of an open letter condemning a “targeted harassment campaign” against an Israeli professor at a London university.

time to read

1 mins

October 26, 2025

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