Monday, Dec 15, 2008
Struggling householders face another hike in council tax as the money councils collect for services
dailymail: Council tax hike warning for householders as town hall income dives
Up to 30 are refusing to pass on the 2.5 per cent cut in VAT, saying it is too expensive to adjust charges for services such as car parking. Wirral Council, in Merseyside, said it would make £110,000 this way.
Posted by mark @ 01:07 PM (487 views) Add Comment
5 Comments
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2. cornishman said...
Not only is their income diving, but their costs are going up.
Re the 2.5% cut in VAT -
Brown/Darling have increased fuel duty to counteract the reduction in VAT on fuel - so the end price stays the same. Fair enough, you might think.
But it was pointed out to me the other day that business (and councils) who reclaim the VAT have therefore had a 2.5% increase in their costs - since they cannot reclaim the fuel duty increase and the VAT that they reclaim is now less than before.
Unintended consequences of policy made on the hoof by someone who will not listen to anyone else, methinks...
3. mark wadsworth said...
Council Tax to go up? Ah, diddums. ALL taxes are going up - and all things being equal, if you are a tenant, higher council tax tends to push down your rent (or prevent it rising as fast as it otherwise would have done) so what do I care?
4. jack c said...
This reminds me of when Denis Healey talked at a Labour conference about squeezing the rich with taxes "till the pips squeak" except that now virtually everyone is being squeezed
5. Eternal Sceptic said...
Once the pips have been squeaked(that is where we are now) what next?. Perhaps councils should be forced to justify every single job they have created. Cannot see the need for hordes of building control, or planning officers- fire them. Local councils have expanded to the n'th degree over the last 20 years. The system worked well previously without all these extra parasites. It is time to get rid of them.