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Warning Over Council Tax Rises

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Warning

Some interesting comments at the bottom of how the public sector are failing to cut costs as like the private sector.

Its important to bear in mind that this report comes from the Local Government Association and they will be trying to put pressure on the government to increase funding to local authorities.

For most parts of the country I think there will be increases but nowhere near 10%. This is really just a rather clumsy attempt by the LGA to put pressure on the government.

I wouldn't take the estimate too seriously especially as each council tax increase is decided by each individual council so it depends where you are.

Also you need to remember that in May 2006 most councils will have all up elections and the budget for the following municipal year has to be decided before the election.

Any council group that wants to hang on to power will be more anxious to cut costs than to increase council tax in this election year.

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Any council group that wants to hang on to power will be more anxious to cut costs than to increase council tax in this election year.

And there lies the link between planning permission and housing needs.

OK look at it this way. Councils need to keep costs low in order to keep council tax low. This pleases the locals who vote them in next time.

Populations in certain areas are increasing. In and near cities etc. So more housing is needed.

Now along comes Robert the Construction worker (Bob the Builder for the uninitiated) wanting planning permission to build some new homes.

As a council do you give planning persmission (or encourage planning persmission) for

a) Three bed low cost housing that will attract lower earning families with kids who need schools, health care, play areas, possibly social workers and family support, maybe disability services, benefits, may have social problems (increase in crime = p1sses of the locals and needs extra police) etc

or

B) Two bed high priced flats occupied by working singles/couples who bring money into the local economy, pay council tax and place no demand on local services.

It's a no brainer if you ask me.

In some highly populated areas could it be that the massive increase in new build 2 bed flats has been driven not by local need but by population competition between neighbouring local authorities?

Just a thought

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Guest magnoliawalls

If council tax is allowed to increase by 10% per year it will double every 7 years, if increases are kept to 5%, to meet the increase cap, payments will double every 14 years.

council tax is now over 1 months take home pay for your tesco worker/street cleaner/ top shop salesperson/mcdonalds worker. And all the other millions in this country that work a ft job in the lower pay scales.

For most of these jobs wages seem to have stagnated - does this mean that, following current trends, every seven years council tax could take an extra months salary from the lowly paid?

I predict riots first.

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just watching news on bbc.

seen some great whinging scarborough pensioners moaning about £100 yearly rises of poll tax.

hah hah - dont like it now do you ? (scarborough very expensive to buy for local youngsters)

how would you like your housing costs to rise 70% as well ?

hurts doesnt it. get used to it.

no sympathy here.....

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just watching news on bbc.

seen some great whinging scarborough pensioners moaning about £100 yearly rises of poll tax.

hah hah - dont like it now do you ? (scarborough very expensive to buy for local youngsters)

how would you like your housing costs to rise 70% as well ?

hurts doesnt it. get used to it.

no sympathy here.....

moaning their council tax has gone up £100 a YEAR..........when for young people the cost of buying a starter home has risen by £100 a WEEK!...........No sympathy here either..................

My 65 yo uncle (another pensioner moaner) bought an ave 3 bed semi in 1968 for £4000 and because of the inflation in the 70s and early 80s .......only 14 years later in 1982 his £12 a week mortgage became a comically small 7% of his average salary............That generation had it easy....didn't they CTT?

Edited by Michael

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If council tax is allowed to increase by 10% per year it will double every 7 years, if increases are kept to 5%, to meet the increase cap, payments will double every 14 years.

Council tax is clever tax, because you have pay it out of your already taxed income. So if the tax goes up £100 you have to earn and extra £170 top rate (or £129 low rate) tax to cover your losses.

So if people do this, the council gets £100 (of which lots is paid in various income taxes to central government) and the punters have to earn more, hence paying around £50 to central government.

So who is the big revenue winner in this increase? Central government.

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No one likes paying taxes - but everyone wants good schools, cleaner streets, vulnerable children to be protected.

I do object however to the way council taxpayers are having to fund the costs of the new licensing act because the fees being charged to licensed premises are insufficient to cover administration costs. In one inner London borough 10% of the total council tax bill this year is down to the licensing act. Make the p*ssheads pay!

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  • 301 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
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      • Even
      • up 2.5%
      • up 5%



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