Modernizing Council Tax Administration in England: Government Launches Consultation

The UK government has issued a news release launching a consultation on modernizing the administration of council tax in England. The consultation seeks to address the outdated disregards in the council tax system, improve the efficiency of council tax administration, and enhance the fairness and transparency of the system. The government aims to strike a balance between delivering a fair system for taxpayers and providing councils with the necessary tools to collect council tax. This follows the government's announcement in December 2024 at the Local Government Finance Settlement to consult on changes to council tax billing.

Key Takeaways:

• The government is consulting on changes to council tax billing, including moving from 10 to 12 instalments by default and improving the transparency of bills.
• The consultation proposes changing the title and definition of the Severe Mental Impairment disregard, which is considered outdated and alienating for households.
• Options to improve access to support are being considered, including disregards for care workers and apprentices.
• The government aims to understand what barriers there may be to councils being able to provide council tax communications even more efficiently.
• The consultation proposes amending the time before councils make request a full-year's bill or seek a liability order, and capping the cost of liability orders.
• The Ministry of Justice is separately consulting on regulating the enforcement agents/bailiffs sector.
• The government believes it is vital to strike a balance between delivering a fair system for taxpayers and giving councils the necessary tools to collect council tax.

Statistics:

• The government proposes changing the Severe Mental Impairment disregard definition, which has not been reviewed in decades.
• The consultation seeks to understand what barriers there may be to councils providing council tax communications even more efficiently.
• The government proposes amending the time before councils make request a full-year's bill or seek a liability order, which is currently [insert timeframe].

Sources:

• Local Taxation and Pensions Division, Ministry of Housing, Communities and Local Government (council.tax@communities.gov.uk), 20 June 2025
• Ministry of Justice, Consultation on regulating the enforcement agents/bailiffs sector
• UK Government, Local Government Finance Settlement 2024-25
• UK Government, Consultation on the principles and objectives of local authority funding reform in December 2024