Thursday, Dec 06, 2007

Phew - only 5%. I'm so happy and glad.

BBC: Council tax increases 'below 5%'

"Council tax bills in England must increase by "substantially" less than 5% next year, the government has said." "Keeping council tax under control remains a high priority for this government." How much has council tax increased over the last 10 years??? Is it now official government policy just to take the p*ss out of people?

Posted by sovietuk @ 05:58 PM (722 views) Add Comment

11 Comments

1. Dave The Box said...

@sovietuk

" Is it now official government policy just to take the p*ss out of people?"

Yes, I believe it is! Using the BBC as their delivery mechanism.

And the "sheeple" are so stupid that they don't realise it.

Thursday, December 6, 2007 06:11PM Report Comment
 

2. drewster said...

Rising council tax will actually help push house prices down. Since 2004, second-home owners have had to pay 90% of the council tax on their second home. This includes Buy-To-Leave properties, where investors don't want dirty tenants making a mess of their shiny new flat. In the past this cost (£1,100 average band D) was more than offset by the rise in house prices, but if prices remain static or fall then the council tax bill will provide a big additional incentive to sell.

In theory if council tax bills were even higher, and offset by lower income taxes, then council tax could act as a brake on speculators.

Thursday, December 6, 2007 06:45PM Report Comment
 

3. jack c said...

The monthly payment of Council Tax has for many become like having a second mortgage or rent to pay. CT is part of essential monthly household expenditure and should form part of an affordability calculation when purchasing a property. If you add in Gas, Electricity and Water payments, all of which have risen well beyond average earnings, this has to weigh heavily on overall affordability and has to be a central reason along with tighter lending in recent months as to why UK house prices have (and I believe will) continue to fall.

Thursday, December 6, 2007 06:50PM Report Comment
 

4. denzil said...

>>Rising council tax will actually help push house prices down.

I hadn't noticed that over the last few years.

Thursday, December 6, 2007 08:09PM Report Comment
 

5. it_is_going_with_a_bang said...

When are they going to tie down Council Tax inflation to CPI?
When will people ever see through this lying government and demand transparency in Taxes.
5% cap? Why is it even anywhere near 5% in the first place????????

Capping powers bla bla bla. Hasn't stopped them robbing me year on year for the last 10 years!!!!!!!
Stable door open - horse bolted!

Thursday, December 6, 2007 09:16PM Report Comment
 

6. drewster said...

@denzil: That's because despite the council tax rises so far, with the average property at £200k and council tax at £1k it's barely 0.5% of the property value. A lot of economists think council tax should be replaced with a Land Value Tax.

The case in favour is presented very well in this article: New Statesman: The Case For Taxing Land

"Without workers, there would be no labour. Without savers, there would be no capital. So you can justify both wages and capital. But why do landowners deserve rent? Without landowners, the land and natural resources would still be available. They have existed since the planet was formed. They have not been created by human effort or ingenuity. ..."


Just search for "land value tax" in your favourite search engine for more information.

Thursday, December 6, 2007 10:00PM Report Comment
 

7. the northerner living in oz said...

5. drewster said...
@denzil: That's because despite the council tax rises so far, with the average property at £200k and council tax at £1k it's barely 0.5% of the property value. A lot of economists think council tax should be replaced with a Land Value Tax.

I Agree
A Land value tax is a fairer tax but the people with power are the people with land assets.

*So sadly this will never change*
.
The current tax system enables the asset rich to remain rich and the asset poor forever struggling
To make a living.

Yes few talented hard working and lucky people occasionally escape the rut
And become significant landowners but they are the exceptions.

Good boook to read on the subject is

******** Ricardo's LAW house prices and the great tax clawback SCAM by fred harrison

Thursday, December 6, 2007 11:05PM Report Comment
 

8. drewster said...

The Northerner: Thanks for the tip, it looks like a good book! Definitely one to add to the Christmas list.

Friday, December 7, 2007 12:43AM Report Comment
 

9. japanese uncle said...

It's about time to realize that local taxation proportionate to house price is the stupidest idea ever. What do they do in the event of HPC to finance council budget?

Friday, December 7, 2007 12:52AM Report Comment
 

10. p. doff said...

Personally, I thought Poll Tax was fair.
I don't see why I should be penalised for a frugal lifestyle which has enabled me to eventually acquire a nice pad, only to be ripped off and have my money handed out to chavs, bums and stiffs.

Friday, December 7, 2007 01:04AM Report Comment
 

11. Van Hoogstraten said...

My council tax in Oz is around $900 a year. The streets are clean & well lit & bins are emptied weekly.

I cannot see how UK councils get away with charging three times that amount & raising it by 10% a year - What the f**K do they spend all the money on

Friday, December 7, 2007 02:51AM Report Comment
 

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