What two elements were combined to form the current council tax system?

The current council tax system in the UK was established by combining property rates and the community charge. This integration was driven by a need for a fairer and more manageable taxation system at the local government level.

Property rates were based on the value of the property, which meant that residents were taxed according to the worth of their homes. On the other hand, the community charge, often referred to as the "poll tax," imposed a flat rate charge on individuals irrespective of their income or property value. The combination of these two systems aimed to address concerns related to fairness and efficiency in local taxation. Specifically, the council tax retains the property value assessment to some extent but also introduces elements of equity by accounting for the number of adults living in a household, thus balancing the need for adequate funding for local services with an attempt to make the tax burden feel equitable among residents.

This transition aimed to create a straightforward system that allows for local authorities to generate revenue while still considering the different levels of wealth within communities.