‘Absolutely nothing for households in council tax debt’ – Debt Justice reaction to the OBR’s Economic and fiscal outlook November 2025

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Responding to the OBR’s Economic and fiscal outlook, out today that shows the government will introduce a “high value council tax surcharge” (mansion tax), Heidi Chow, Executive Director of Debt Justice said:

“This is a welcome infusion of cash into strained local government finances. But it does absolutely nothing to alleviate pressures for low-income households, who make up the vast majority of people in council tax debt. The government should have taken bold action to replace the outdated and regressive council tax with a proportional property tax to address the build-up of £8bn of unaffordable council tax debt.”

Notes:

Council tax arrears in Britain stands at £8.3bn according to latest Debt Justice analysis: https://debtjustice.org.uk/press-release/new-analysis-from-debt-justice-reveals-that-total-council-tax-arrears-across-britain-have-reached-a-record-of-nearly-8-3bn-underlining-the-deepening-financial-strain-on-households-amid-the-ongoing-co

Debt Justice (formerly Jubilee Debt Campaign) is a UK charity working to end poverty caused by unjust debt through education, research and campaigning: https://debtjustice.org.uk/

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