Full Breakdown
MPs Push to End Council-Tax Referendum Requirement Ahead of Andy Burnham’s Premiership
7/14/2026, 8:32:05 PM
Proposed Elimination of Council-Tax Referendum Rules
A cross-party group of MPs is urging incoming Labour Prime Minister Andy Burnham to scrap the statutory requirement that councils hold a local referendum before raising council tax by more than 5 percent (or 3 percent where adult-social-care services are not provided). The MPs argue that elected councils should set tax rates directly and be held accountable at the ballot box, rather than through ad-hoc public votes.
Historical Context of the Referendum Requirement
Council-tax referendums were introduced in 2011, ending a century-long practice of councils determining rates without a vote. Since then, the government has granted exemptions to several authorities facing severe funding shortfalls, allowing them to increase tax above the thresholds without a referendum. The all-party parliamentary group (APPG) on local government contends that the current “referendum principles” are a recent, “absurd” addition to local finance.
Official Positions and Statements
Labour MP Clive Betts, chair of the APPG and supporter of Burnham’s leadership bid, told Sky News he wants “devolution of accountability and responsibility” alongside broader fiscal powers for councils. He added that elected councils should explain tax decisions to voters, who will then judge whether the levies are reasonable. The group also proposes that a share of income tax, stamp duty, landfill tax and the growth-and-skills levy be retained locally, and suggests Burnham follow Wales by creating a higher council-tax band for the most expensive homes.
Verbatim Quotes
- “In the end, councils who are elected should be responsible for explaining local tax to local voters.” — Clive Betts, Labour MP
- “Those voters will decide whether councils behave reasonably for the level of council tax they are levying.” — Clive Betts, Labour MP
- “If councils facing acute financial pressures can be trusted to set higher council tax rates some because of their own poor leadership why can't all local authorities do so?” — APPG statement
- “Devolution of accountability and responsibility.” — Clive Betts, Labour MP
What’s Next
Ministers are expected to announce a major overhaul of English local government on Thursday, including proposals to merge district and county councils into single-authority bodies, with some changes potentially imposed despite local opposition.
