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Council Tax to go up 6% in blow to housing costs

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The problem is council tax, has those in low value properties paying a much higher proportion of the value of their home than those in expensive properties. It was deliberately designed that way. The 6 percent increase will be across the board and financially hurt a low income renter in a low value area much more than  a higher income individual who owns somewhere ten times the value. The main effect wont be on house prices, but the disposable income of poorer working people. Bolton will end up worse off than Belgravia. 

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The ridiculous bit is how they compare 'Band D' as an average when most properties in Kensington are F/G/H while in a Northern town most are A/B/C which makes Kensington look much cheaper when the average actually paid by residents is much the same.

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25 minutes ago, nothernsoul said:

The problem is council tax, has those in low value properties paying a much higher proportion of the value of their home than those in expensive properties. It was deliberately designed that way. The 6 percent increase will be across the board and financially hurt a low income renter in a low value area much more than  a higher income individual who owns somewhere ten times the value. The main effect wont be on house prices, but the disposable income of poorer working people. Bolton will end up worse off than Belgravia. 

Yeah, this. Plus properties haven't been revalued since the early 90s, so the huge in increace in wealth in some areas hasn't been reflected in the tax levied - round here expensive town center flats frequently pay less than council houses because they were grotty in the early 90s.

Also the percentage increace cap encourages Councils to go for the maximum increace. If they don't they can't catch up with the 'lost' income if they need more cash in thr future. A badly designed tax that's been poorly implemented.

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Good.  Anything that helps push prices down or stresses 'poor' homeowners is worth celebrating.  I agree that council tax is loaded towards the bottom but that's what you get if you vote Tory.  Why anyone who is not very wealthy votes Tory is totally beyond me.

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Who remembers when they cut the Poll Tax by £140 and paid for this by increasing VAT to 17.5%.

Then we switched to Council Tax , they have put this up again and again to claw back that £140 . Then they reduced VAT back to 15% no sorry my mistake they have put VAT up to 20% now . We pay again and again !!

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38 minutes ago, dougless said:

 Why anyone who is not very wealthy votes Tory is totally beyond me.

They say : "If you are not a communist at 20, you have no heart. If you are a communist at 40, you have no brain." Why would anyone vote at all may be a more pertinent question - after all you have to descend into a cesspit and pick the most beautiful turd, 99% of time at least. That's your choice. They are all philosophical marxists.  Actual implications for you median working man are trivial. (Overall tax burden is the best proxy).

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This will stress poor non homeowners more. Better off tory councils will be able to limit rises, while poorer labour ones will have to raise by the full 6 percent to fund all their services. The government will claim this is due to labour council waste and inefficiency. There may be some truth in that, i dont know, but probably more to do with collecting less in tax and needing to spend more on social deprivation. 

 

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All these rises (in everything) are insane in the face of a dying economy, people with less money etc.

It's like the powers that be want to totally destroy whatever is left.

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Council tax rising will have no direct effect on residential property prices, its a pseudo property tax anyway. If the government belatedly decided, after  over 25 years to revaluate residential property, and add an extra band at 500 thousand, that might have an effect. 

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Ah Tories, the party of "low tax". Which actually means low(ish) headline taxes while stealth taxing everything else they can. Central government funding to councils has been slashed year after year and according to the leaflets coming through my door, the cost of elderly care is rising. So we're all going to have to pay. Just remember, the Tories are lying to you when they say they're the party of low taxes and business. 

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53 minutes ago, nothernsoul said:

This will stress poor non homeowners more. Better off tory councils will be able to limit rises, while poorer labour ones will have to raise by the full 6 percent to fund all their services. The government will claim this is due to labour council waste and inefficiency. There may be some truth in that, i dont know, but probably more to do with collecting less in tax and needing to spend more on social deprivation. 

 

non homeowners have the advantage of being able to move easily

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3 hours ago, dougless said:

Good.  Anything that helps push prices down or stresses 'poor' homeowners is worth celebrating.  I agree that council tax is loaded towards the bottom but that's what you get if you vote Tory.  Why anyone who is not very wealthy votes Tory is totally beyond me.

Because of who the other choices are?

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1 hour ago, dugsbody said:

Ah Tories, the party of "low tax". Which actually means low(ish) headline taxes while stealth taxing everything else they can. Central government funding to councils has been slashed year after year and according to the leaflets coming through my door, the cost of elderly care is rising. So we're all going to have to pay. Just remember, the Tories are lying to you when they say they're the party of low taxes and business. 

In 2010 it was impossible to imagine how anyone could do a worse job of managing the national accounts than Blair and Brown but I think history will record that Cameron and Osborne were at least their equals in incompetence.

So after 8 years of bogus austerity the bills are now falling due. Spend like a centre-left govt and eventually you will be obliged to tax like one.

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Quite simply this will continue well into the future.

as we continue to pay billion pound a week in interest only, not including principle sum, the gvt proportionally have less disposable income, so they cut back.

it only takes a huge reduction in tax income and the scales really tip.

all this austerity is in part a cover story to hide how much money we are truly giving away with nothing to show for it.

so, they cut back to the councils who then have no choice but to ask us for above inflation charges to make up the shortfall. Include police (speed cameras), hospitals (crazy at times parking costs), and it goes on and on and will continue to get worse.

one day when the public sees funallynthat sod all gets spent on roads, education, health, we might all collectively ask where the f*** our cash is actually spent.

ppl also forget the leisure, arts and sports burden the gvt used to shoulder now gets cash from lottery players, another avenue the gvt have been able to secretly cut back on without public outcry.

to even attempt to save 1-2 million in say education is plain daft when we gift 1 billion a WEEK in interest payments alone puts things into very obvious perspective, that, this country is at an end as far as the system is concerned.

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Many councils will raise to the maximum each year so presumably council tax bills will now rise 5.99% every year. Oh dear! 

Edited by Ash4781

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I rent, I pay the council tax as do all the other renters in the block live in. No homeowners here.

i don’t mind paying more for services that help the community, I do mind when the council slash the size of the library so that they can rent out two thirds of it to a big brand coffee shop. Councils can make money without raising rates, they just raise them anyway.

Need to balance my books now so will make a cut somewhere. 

 

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Some councils have had their budgets cut massively in the last few years, that is funding coming from government. Council tax take is a small fraction of total budget. In Trafford we had a 3% rise last year, and they have had to privatise every service from bin emptying to highway engineering to cut costs. Loads of services/health/care/youth centres/libraries lost. Bins in parks only get emptied when they are overflowing and someone shames the council via social media. 

Last summer they introduced a charge for emptying the green recycling bin if it contains garden waste, £40 a year for that.  I reckon they will hit us with the full 6% next year.

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19 minutes ago, Andy T said:

In Trafford we had a 3% rise last year, and they have had to privatise every service from bin emptying to highway engineering to cut costs. Loads of services/health/care/youth centres/libraries lost. Bins in parks only get emptied when they are overflowing and someone shames the council via social media. 

Last summer they introduced a charge for emptying the green recycling bin if it contains garden waste, £40 a year for that.  I reckon they will hit us with the full 6% next year.

So what do you actually get for you ctax these days? Apart from public sector pensions.

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This rise will just destroy the economy yet further. It's more money that won't be spent in retail or services.

They should be trying to get more money in the hands of the people (not debt), but instead they are taking it away as fast as they can.

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Classic Tory sleight of hand. Give with one hand (increase tax bands), take with the other (you'e had a tax break, now we have less to spend so you'll have to sort local services yourselves. 

Hoorah for the small state.

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  • 407 Brexit, House prices and Summer 2020

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      • down 5% +
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      • up 5%



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