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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
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.
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FLERE HISTORIER FRA The Observer
The Observer
Reeves needs to call time on dodgy stats
On Friday, the latest retail sales numbers for the British economy were due to be published.
1 min
August 24, 2025
The Observer
Lucy Connolly isn't a hero. Justice doesn't mean a verdict you approve of Kenan Malik
Lionising a woman who pleaded guilty to stirring up racial hatred is a moral failure by the right
4 mins
August 24, 2025
The Observer
We can't shrink from Palestine Action
There is one part of the UK where terrorist flags and placards have rarely been off the news.
3 mins
August 24, 2025

The Observer
Politically acceptable UK racism is on the rise. And, worse, this is under 'progressive' Labour rule
As I wrote these words last autumn: \"We have made progress... even though that progress remains fragile and insufficient\", little did I realise just how right I was.
3 mins
August 24, 2025
The Observer
We want peace – but not on Putin's terms, Ukrainians say
Weary of Russia's war, the citizens of Ukraine are nevertheless wary of a settlement that might give away too much, or that doesn't carry a security guarantee, reports Liz Cookman in Kyiv
4 mins
August 24, 2025
The Observer
Take tougher line on asylum human rights, judges told
Labour will order judges to reinterpret parts of the European Convention on Human Rights (ECHR) early next month as the government grapples with the asylum appeals backlog that has sparked the current crisis.
2 mins
August 24, 2025
The Observer
Musk flies a drone fleet over the capital. (Luckily, it's not Elon)
News that a Musk-owned fleet of drones is flying over London this weekend might be enough to prompt fears of a new Blitz.
1 mins
August 24, 2025
The Observer
Ganges river dolphin
The dark is my delight.
2 mins
August 24, 2025
The Observer
Jerome Powell
If anyone can stand up to Trump, it's the affable and decisive Fed chair, writes Matthew Bishop
4 mins
August 24, 2025

The Observer
'We're hiding some very dirty secrets'. The scandal of fake foreign honey
An investigation by Jon Ungoed-Thomas reveals the worldwide honey fraud that begins in China and ends with allegations of adulterated jars on UK supermarkets shelves
5 mins
August 24, 2025
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