The council tax system is a ‘mess', is unnecessarily regressive, and should be replaced with a housing services tax (HST), a major report into the UK tax system has suggested.

The five-year Mirrlees review, one of the most far-reaching tax studies for decades, was published by the authoritative Institute for Fiscal Studies last week – and suggests abolishing the much-criticised current council tax system, through which local authorities raise around 25% of their finances.