Intentar ORO - Gratis
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
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.
Esta historia es de la edición August 24, 2025 de The Observer.
Suscríbete a Magzter GOLD para acceder a miles de historias premium seleccionadas y a más de 9000 revistas y periódicos.
¿Ya eres suscriptor? Iniciar sesión
MÁS HISTORIAS DE The Observer
The Observer
Clacton seat could be up for grabs after investigation into Farage’s £5m ‘unconditional gift’
The next British parliamentary byelection is, quite possibly, going to be in Clacton.
4 mins
June 28, 2026
The Observer
Fayed abuse survivors accuse Met police of ignoring trafficking claims
Women now identified as victims of modern slavery have complained about how the force handled cases against the former Harrods boss and his network
4 mins
June 28, 2026
The Observer
Meeting Greenspan was like an audience with the Wizard of Oz
For a young economics journalist, an interview with Alan Greenspan (officially, he never gave interviews) was like having an audience with God, or perhaps the Wizard of Oz.
1 mins
June 28, 2026
The Observer
Vagrancy Act of 1824 is finally repealed
Homelessness charities have hailed the repeal of the Vagrancy Act after 202 years as a “watershed”, “land-mark” and “defining” moment.
1 min
June 28, 2026
The Observer
Volkswagen workers fear bite of ‘Wolf of Wolfsburg’
If Volkswagen proceeds with its plan to shed as many as 100,000 jobs, it will not only underline how dire the outlook is for Germany’s car industry in the face of fierce Chinese competition but may also sound the death knell for the vaunted postwar German model of stakeholder capitalism.
1 min
June 28, 2026
The Observer
Myanmar demanded data from a Norwegian telecoms firm. Months later, an activist was dead
Telenor's sharing of private data with the military led to the arrest and deaths of pro-democracy resistance members, alleges a class-action lawsuit filed in Norway
11 mins
June 28, 2026
The Observer
'It'll get more intense and more frequent'
Last week’s weather will not be a one-off. Experts say it’s time to make infrastructure more resilient to climate change.
1 mins
June 28, 2026
The Observer
The Thames Water test will flush out Burnham’s approach to the economy
A tourist gets lost in the Irish countryside and asks a passing farmer for directions. “Well, if I was you,” the man responds, “I wouldn’t start from here.” So goes the old joke.
4 mins
June 28, 2026
The Observer
EasyJet adds to UK equities flight fears
The budget airline could soon become the latest British company to fly off the FTSE as foreign investors rush to snap up a bargain, reports Barney Macintyre
2 mins
June 28, 2026
The Observer
Lammy: ‘I’ve been loyal to every Labour PM. I’ll be loyal to the next’
When Keir Starmer made his tearful resignation speech outside No 10 last week, David Lammy was one of only a handful of cabinet ministers standing beside him. “Loyalty and trust and conviction are underrated values, but important values in politics,” he says.
3 mins
June 28, 2026
Listen
Translate
Change font size
