Council Tax up again

Gary Jackson

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looks like we are getting hit in the pocket again.....




Prescott said there were no excuses for tax hikes
Deputy Prime Minister John Prescott has warned local authorities he may limit excessive council tax rises.
Despite his party abolishing universal capping, Mr Prescott said he retained powers to slash excessive rises by "irresponsible" councils.

Households across the south-east are facing the biggest increase in bills since the charge replaced the poll tax 10 years ago.

The Conservatives blame this on changes in the way government grants - which make up about 75% of council income - are handed out.

'Bigger grants'

They say amendments to the funding formula for local authorities have led to southern Tory councils being punished.

Speaking to Labour's North-West conference in Southport, Mr Prescott said: "This government has abolished the Tories' crude universal capping.

"But it is only fair to warn those authorities proposing excessive council tax rises - some as high as 40% or 50% - that I do not rule out, on a case by case basis, using reserve capping powers."

What Mr Prescott has done has capped his own exercise in financial gerrymandering with an outbreak of political hypocrisy

David Davis
Conservative shadow to John Prescott
The deputy prime minister said Labour had increased funding for local government by 25% in real terms since 1997.

Tory flagship borough Wandsworth in south London is expected to increase council tax by 45%.

Average bills in shire counties are predicted to rise by around 13% - almost five times the inflation rate of 2.7%.

Mr Prescott said there were no excuses for large tax hikes.

"People see through the cynical Tory propaganda about robbing the South-East for the benefit of the North.

"Why? Because every single authority - north, south, east or west - received a grant increase greater than inflation.


Some households face 50% tax rises
"No-one was robbed. They all got more. Every single one of them."

He added local government had received "more money, more jobs, more services, more powers, more freedoms, more flexibilities", but must act more responsibly in return.

Mr Prescott's Conservative counterpart, David Davis, said: "What Mr Prescott has done has capped his own exercise in financial gerrymandering with an outbreak of political hypocrisy.

"The grants that supposedly match inflation for many Tory councils do not even meet the 6.6% required increase in education funding and the 8.6% increase in social services that make up the major part of many councils' costs."

Capping was introduced by Margaret Thatcher and in practice means limiting town hall spending in order to keep council tax down.


And in my local paper:

COUNCIL TAX HIKE RUBBER STAMPED


BOROUGH residents will be hit with a 7.5 per cent increase in their Council Tax bills from next month.

The increase was rubber stamped at a full council meeting yesterday, and sparked a heated debate in the chamber as leaders had to shout to be heard.
The tax hike will see Band A householders pay an annual bill of £751.86 - an increase of more than £52, while Band D households will fork out an extra £78 a year, a total of £1,127.79.
Council property tenants will also be forced to find extra cash to cover a 5.13 per cent increase in rents when the budget is implemented next month, paying an extra £108.68 a year for an average home.
Council leader Paul Waggott said the tax increase was needed to improve services and bring about a transformation of the borough for future generations.
Coun Waggott said: "We need to spend money to deliver our new vision, a better future for South Tyneside people, and although the increase in Council Tax is more than I would have liked, it is essential to deliver this ambitious and exciting programme of improvement and change."
Coun Jim Selby, leader of the opposition Liberal Democrats, spoke out against the budget saying it showed the Labour council leaders were letting the community down.
He said: "Last year saw the council tax set at an inflation-busting eight per cent, placated by a statement by the council leader to limit increases to four per cent in the next two successive years.
"Lo and behold as this year's budget is unveiled, once again we face an inflation-busting increase of 7.5 per cent-almost double the ceiling indicated."
Deputy council leader Coun John Temple attacked the opposition saying they had offered no credible alternative to the budget proposals.

What the % are up!!!!!

Millions face 'biggest' council tax bill


Many households could face a higher bill



By John Andrew
BBC local government correspondent



Millions of people face the biggest rise in council tax bills since the tax was introduced ten years ago.

Shire counties in the South East are warning of rises up to 20%.

They blame the increases on shortfalls in grant caused by the government's new formula for distributing grant.

Many people will see their bills go through the £1,000 barrier for the first time.

Kent shortfall

Kent County Council - England's biggest local authority - has confirmed it is cutting three hundred administration jobs to avoid a swingeing increase in tax bills.

Even so, it is putting up council tax by 12.5% - its biggest ever rise.

Proposed tax rises
Kent 20%

East Sussex 20%

West Sussex 18.5%

Essex 16.7%

Hampshire 15%`


Kent says that, like other councils, the government expects it to increase school spending by 6.6% and social services by 8.9%.

But Kent's grant support from the government has risen by just 3.9%, leaving it no choice but to find savings and increase council tax sharply.

North-South shift

Councils are complaining about a new government funding formula which they say is shifting resources from the south to the North and Midlands.

Kent council's finance director David Lewis described it as "the biggest shift of funding in my career in local government."

The shadow chancellor Michael Howard, MP for Folkestone and Hythe, said the Government had stolen £40 million from Kent and given it to other parts of the country.

Other counties have been harder hit and are proposing even bigger increases.

They include East Sussex (20%), West Sussex (18.5%),Hampshire (15%) and Essex (16.7%)

Not-so magic formula

The Government's "formula funding" system was used for the first time this year, replacing the old method of "standard spending assessments".

The new system is meant to be fairer, simpler and a truer measure of need.

That is an infinitely more generous settlement than under the Conservative years



Tony Blair


Although councils in the North and the Midlands received some of the biggest grant increases this year, the Government denies it was all part of an agenda to shift resources from the South.

To cushion the effects of any changes, they've introduced "floors" and "ceilings" to make sure no one loses or gains too much.

This year, every council was guaranteed an above-inflation increase in grant of at least 3.5%.

Generous?

But Kent warned that over the next three years it will suffer an 8% cut in grant for school budgets.

The council's leader, Sir Sandy Bruce-Lockhart, acknowledged that the northern economy needed boosting but said the way to do it was through capital grants from the Department of Trade and Europe and not through the council tax rises in the south.

In the Commons on Wednesday,Tony Blair said that this year local government overall was getting a 6% real terms increase in grant.

"That is an infinitely more generous settlement than under the Conservative years," he said.
 
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