Recent analysis reveals that the burden of council tax on Britain's poorest households has nearly doubled over two decades, rising from 2.9% of income in 2002-3 to 4.8% in 2020-21. The Resolution Foundation's report underscores the tax's regressive nature, stating it disproportionately affects low-income households compared to wealthier households. Various councils have failed to modernize tax assessments which were based on property values from as far back as 1991. The abolition of council tax benefit in 2013 is cited as a key factor worsening the situation, paralleling the council tax to the unpopular poll tax era of the late 1980s.
The poorest fifth of households paid 4.8% of their income on council tax, up from 2.9% in 2002-3, highlighting a regressive taxation issue.
The failure to reform council tax has exacerbated its regressive nature, where poorer households pay a significantly higher proportion of their income compared to wealthier households.
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