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Last Updated: Friday, 26 September, 2003, 11:33 GMT 12:33 UK
Who's to blame for Council tax rises?
Protests against council tax rises
Council tax bills are reaching the "limit of acceptability" for many families, local government minister Nick Raynsford has conceded.

The bills have risen sharply this year, with increases averaging nearly 13% among English councils, and there have been growing signs of public discontent.

Some pensioners - including a group of about 300 in Devon and Cornwall - have begun refusing to pay, saying they are prepared to go to jail instead.

Nick Raynsford says the government is investigating whether or not to force councils to hold referendums if they plan to increase their council tax rates by more than twice the rate of inflation.

Who should take the blame for the council tax increases? Should the government cap high spending councils?

This debate is now closed. Read a selection of your comments below.


The council's bureaucracy is so immense
James, Harrow, Middlesex
Our local councillors voted unanimously to give themselves a pay rise beyond inflation. In fact, it was just short of the council tax hike of 20%. Yes 20%. The area, once a lush and beautiful part of London, is now open to vandalism, juvenile behaviour, rubbish tipping. The council's bureaucracy is so immense that on some days it would take a member of the public two days to get through to a department, because no-one inside the council itself is competent enough to help. The councillors squabble at meetings. They do things off the whim, thinking that once it's done no-one can go back and rectify the problem.
James, Harrow, Middlesex

A few of the so-called "less well off" areas in my home town (the equivalent of about 1,500 houses) have recently been given double glazing throughout (something I can't afford), posh new front doors (something else I can't afford), have had their house boundary walls rebuilt (mine is falling down), and have had their house repainted! Is this how my whopping council tax is spent?
Adam, Barry, South Wales

The tax system in this country has become ridiculous. Surely we could remove vast numbers of non-productive council and state bureaucrats by simply having a single nationwide income tax and only one agency to do it. Or am I being too simplistic?
Frank, Taunton, Somerset

Why should the taxpayer subsidise failure?
David, UK
Some comments suggest that privatisation impedes public sector performance and takes money out of the system. I've worked in councils for some years and seen waste, attitudes and cultures that would make taxpayers blanche. It's not even in question that councils need major root and branch reform, that services are market tested, and that individual departments should lose their right to deliver services where a more cost effective, motivated and professional provider exists. Why should the taxpayer subsidise failure?
David, UK

I disagree with the Liberal Democrats' new policy of scrapping council tax and replacing it with higher income tax. I, like many people have looked on in dismay over the past few years as house prices have rocketed and higher earners have in effect been pauperised. People should be taxed on the value of their properties as well as the level of their salary. I would consider myself an above average earner yet I cannot even afford to buy an average priced house. Now the Lib Dems want me to subsidise people who own property. It is not salary which creates wealth but assets and property.
Martin, Nottingham, UK

Council tax + income tax + VAT + tolls + congestion charge + free air. Thank God breathing air is not taxed yet. Please think of ordinary people. I pay 11% of my net monthly income on council tax only. Any further rise is completely unaffordable.
Bij, London

The concept of the poor pensioner unable to afford Council Tax is a phoney one. Poor people, including pensioners, are entitled to Council Tax Benefit (CTB). The CTB calculation ensures that recipients are immune to Council Tax rises. It was a similar phoney concept that led the Thatcher government to introduce Community Charge (Poll Tax). Politicians with short memories make bad laws.
John Sullivan, Surbiton, Surrey

Increases in public services are being funded by the back door
SD, Leamington Spa
The reason that council tax has risen over the past few years is that it is far less politically sensitive than a raise in income tax. Increases in public services are being funded by the back door. This has to be funded by one tax or another, though council tax is regressive and therefore does tend to hit the vunerable.
SD, Leamington Spa

A Local Income Tax would have to be introduced at 5% if it was to raise the same level of tax that the Council Tax does. Clearly that would be a hammer blow to all the hard working families. The real issue about local taxation is not the system of tax but the high level of spending. Whatever the system the tax will be high.
Paul West, Ipswich, UK

1) The Labour government for placing more burdens on local authorities without appropriate additional funding. 2) Local authorities for their inefficiency, bureaucracy and waste. Most have no idea about providing value for money for the taxpayer. 3) In the case of London, Ken Livingstone - who has charging a levy for the Greater London Authority - for absolutely no benefits to the taxpayer!
Chris, London

Government assess what it thinks ought to be spent by a council then how much it is willing to contribute towards it. In some cases as little as nothing and in this area 62%. The national average is 75%. Education, social services, environment and transport spending is dictated by the need to comply with often inappropriate government rules.

The secretary of state for education can actually increase council tax if he feels not enough is being spent. The problem is the present system fails to accurately match need with the government assessment of need. It also fails to deal with government passing down responsibility and inadequate money to pay for it. For the record audited accounts are available and there are scrutiny committees to check them. The problem is the rules are so specific only a public accountant can understand them.
Anon, Bristol

What is needed is a system which spreads the financial load more fairly amongst all who use the services provided by the local authority. The problem being that the last time everyone was asked to pay their fair share it nearly brought down the government. That was the Poll Tax, I'm still awaiting an explanation as to why it was such a bad idea.
John, UK

Anyone seen the Simpsons episode where Homer gets elected mayor by promising to get the town's running costs paid by "Someone Else"? Most of this discussion reminds me of that. The costs of local government (mostly schools and care of old people) need to be paid. If we abolish council tax, the money will need to be raised another way. If it's done in a way that charges pensioners and single households less, then working families will have to pay more. There's no free lunch here.
Archie, Aberdeen UK

A stealth tax of huge proportions
David Walker, Bridgnorth, UK
Successive Conservative and Labour governments have used/abused council tax as a 3 card trick to transfer problems and initiatives to councils without passing on the funding for councils to deliver them. A stealth tax of huge proportions. Time for a change - Scrap Council Tax!
David Walker, Bridgnorth, UK

Apart from the usual middle class whingers who will always complain about having to pay for anything. This is another case of privatisation being a bad deal for the public. All of these service companies which now do most of the work for councils now have to pay shareholders, which the council didn't have to. The loss of council housing has also reduced council rents. At the end of the day this is the direct result of the way the country has been run since 1979. Yes this government is at fault but let's not forget who started the rot.
Vish, UK

But don't blame the council workers. I'm 32 and trying to get out because over the last 13 years I have never managed to get more than �14,000 a year in pay for doing a facilities coordinator job worth �25K. Part of the fault is the fact that central government awards more grant money to councils in their power than others.

My council (Essex) is one of the biggest councils and yet we were given around 3.5% in Central Government grant which meant a council tax hike that even I can't afford all because we are not a Labour controlled area. John Prescott's home constituency got a council tax rise of just 4% so you can imagine how much money the government gave them! So next time you get irate with the person on the other end of the phone to the 'Evil Council', spare a thought for the poor souls taking the abuse for half of what most of you are paid.
Richard, UK

The squandering of resources on pointless council departments and the general lack of efficiency, laziness and incompetence of council employees (I've worked there for years) makes the recent rises hard to take. But some people seem to want to pay at an individual level. This used to be called the Poll tax, caused rioting and was abolished for the current 'fair' system whereby households are charged irrespective of the number of individuals or their use of services. I could never understand the fuss of individual responsibility at the time and I think it's a shame that we'll never go down that route again. Why should lone householders, or childless couples be penalised?
NH, London, UK

My council Tax has gone up from �1350 to �1550 in the last year. The Lib Dems answer to these rises is to replace this with an income tax?? I already pay 40% tax on my income so why should I pay the council more to collect the bins than my next door neighbour because I earn more?
Andy, Basingstoke

I don't know who is to blame but my Council Tax is a thumping �1800 per annum. By comparison in 2002/2003 I paid �5800 in income tax and I am a higher rate taxpayer. Quite clearly if this years increase of nearly 18% is repeated in subsequent years, my council tax will soon match my income tax!
David Morris, England

Since 1996 my Council Tax has gone from �679 to �1350 a 98% rise
Gerry, Marlborough
Since 1996 my Council Tax has gone from �679 to �1350 a 98% rise while in the same time inflation has been running at approx 3% per annum. Based on the inflation rate my council tax should be about �860. I look for explanations as to why?
All I can come up with is the fact that there seem to be more jobs in government than ever before.
Gerry, Marlborough

As education absorbs most of council budgets, transfer it to the national budget to which we all pay according to our means. Its costs, salaries etc are dictated by national policy and its removal would enable us to really judge how efficient our councils are in areas which they can at least to some extent control.
Alan, UK

If central government stopped its absurd demands of local councils and ring fencing grants to suit its own demands, local government would be better able to deploy its income to meet local needs. National Policing plans (requiring vast funding), changing command and control regulations, audit requirements etc all sap the local authority purse.
Benjamyn Hartley, Lincolnshire

After the two biggest drains on a councils budget were removed, i.e., old people's homes and council houses, I expected the council tax to come down, but no it went up? I pay �1100 for a band C little bungalow, which is ridiculous.
Dan Wright, Sandbach

Rising council taxes is just one symptom of the demise of Britain under Labour.
Gordon Brown is desperate to keep to his spending plans but hamstrung when it comes to funding them. Unable to raise income tax due to the dishonesty of the Labour manifesto, Brown is forced to raise taxes by other means. Increasing the burden on local councils whilst reducing the central contributions to them is just one way of saving the Treasury's purse strings. There are many more examples of this deceit too numerous to mention.
Edwin Thornber, UK and Romania

My council tax is �80 per month paid by direct debit which as a disabled pensioner cannot afford to pay. The matter is a disgrace that pensioners are contemplating going to prison, because ones investment is over the limit cannot obtain income support for relief of council tax. If one contemplates taking a lodger then forced to pay the full rate with the likelihood of not being able to get the lodger out of the house as a sitting tenant. The disabled, senior citizens are treated disgracefully in the UK with no Social Services when required.
Mrs. Harmar, Hayward's Heath

I applaud the pensioners for their stance. My own pay never rises more than inflation, yet my council tax has gone up to �950 from �800. Where will it stop if ever? I don't see any improvement in any local services. The area is generally run down, prone to vandalism as the police rarely show their face, except perhaps from behind a speed camera. I agree with Brian of Manchester, a local sales tax or even to up the rate of VAT to cover the costs to run these so called services, because the public will retaliate eventually.
Alan Taylor, Neath, Wales

Perhaps Councillor Paul Leake, Durham, UK can help me. I would like to see the audited accounts of my local council so that I can make up my own mind as to whether my, and everybody else's, council tax is being spent, in my opinion, wisely or not. However, I have been informed at my local council offices that I have no right to see them and that "we don't have time to deal with that sort of nonsense". Therefore, Mr. Leake please can you tell me how I can find out the information I require.
Might I suggest to other readers that one way to show disapproval of council tax is to appeal against your banding (you have the legal right to do this up to six months after moving to a new house).
Andy, Wiltshire, UK

Council tax is a disgraceful way to literally steal your money from you. We already pay plenty of taxes that could help pay some of these things. Many of our councils are in debt through bad money management, lax laws and sometimes rogue MPs and councillors not overburden on the system. Taxes, including the council tax, cannot continue to increase indefinitely, we must therefore choose another way before our choice is removed.
Mr Brooks, UK

There is no reason why rates should rise above the rate of inflation, it is pure greed by all councils simply to award themselves pay increases and to cover up their bad management. To blame the government is just another excuse to pass the buck.
Andrew, Blackheath, England

A local sales tax would spread the cost more evenly
Brian Miao, Manchester, England
Why have council tax anyway? A local sales tax would spread the cost more evenly and everyone would make a contribution rather than having to implement ever increasing tax rises. Give councils more money and they will find a way to spend it rather than being prudent.
Brian Miao, Manchester, England

I have every sympathy with the pensioners, but no-one seems to be registering the burden in Scotland. Living in a flat in Glasgow, I pay over �2200 per year. None of the English figures seems remotely comparable.
Iain Hill, Glasgow, Scotland

If people want better public services they have to be prepared to pay for them. Comments regarding RPI and annual increase in earnings are totally irrelevant. If we want more policemen and teachers as well as better roads and social care, we have to shut up and put our money where our mouths are. Full stop.
Robert Thorley, Staffordshire, UK

The government is to blame for high council taxes which is why myself and many other pensioners have been forced to leave the country and live where our pensions allow us to have a decent standard of living. My local council tax where I live now is �90 a year. Our dustbins are emptied every day, not once a week and the streets are swept daily and not every six months as in England when the council tax is due.
John Greenon, Spain

If you look at Wednesday's "Guardian" and see all the council jobs advertised there, it's not too difficult to see where a lot of the money is wasted.
Robin Davies, Carmarthen, Wales

Is it coincidental that we are paying ever increasing council tax bills after years of "Best Value" whereby services have been sold off to the private sector because they are supposed to cost less and be more efficient? Could it be that these companies no longer provide "Best Value" and now that they have control of many services and in some cases whole councils, they are raking in the profits at the expense of a captive market?
Terry, Cambridge, England

The Byzantine arrangements for funding councils from central government funds enables both sides plausibly to blame each other, with the public none the wiser. Local spending should be supported from local taxation, with councils free to set their own priorities. Of course, there must be a concomitant reduction in central government taxation. Heaven knows, this might even lead to respectable participation in local elections!
Neil, England

Wait until the tax band changes hit us in the future - you'll see taxes going up over 100% for higher band changes.
Eamonn, Lewes

Well done to those pensioners who are taking their protest onto the streets
J.D.Penn, Luton
As a middle earner with two young children I have seen what I consider to be unacceptable increases in council taxes in the last two years. I am happy to pay the rate of inflation but that is all. My salary does not go up by more than the RPI each year. Enough is enough. Well done to those pensioners who are taking their protest onto the streets. Regards
J.D.Penn, Luton

Central Government keeps pushing more and more responsibility onto local government without providing the funding for it. Ultimately if we want good services we have to pay for them, but Labour should fund them openly through income tax, not through a 'stealth' Council Tax that hits pensioners and the poor disproportionately.
Cllr Paul Leake, Durham, UK

The council tax rate is outrageous, it's become a second mortgage but with nothing to show for it!
Mr N Potts, Derby England

It's impossible to tell who's at fault with local and central Government publicly blaming each other - but in the meantime, it is normal people on normal wages who are suffering. My Council Tax bill (for Hackney in London) tops �1,000 a year yet the schools are failing and the crime rate is high. The streets are filthy, badly lit and badly maintained. A huge percentage of the borough's residents are housed in depressing, crumbling tower blocks. The running of the Council itself inspires no trust (financial scandals, unhelpful staff, endless administrative errors). So where does our money go? I'm convinced people wouldn't mind paying this money if they could see any notable improvement to the area they live in! - but at the moment, it seems like we're throwing more and more of our wages into a black hole.
Laura, London, UK

My annual pay increase this year was less than 2% in keeping with RPI. As someone who lives alone and pays a mortgage the 12% increase in Council Tax and additional NI contributions since April has left me considerably worse off. This is not what the Labour Party promised us in 1997 and 2001. Where are the improvements in public services? It is particularly frustrating as there is absolutely nothing that I can do about it.
Nik Potter, Caddington, Beds

I am bemused by most contributions on who's to blame. We are to blame. We elect councillors (those of us who can be bothered to vote) and, no matter who gets in, we complain. We are the people who request (demand?) the services and we are the people who complain when the money is spent on those or similar services. If we stop asking for things to be done then perhaps the local taxes might not increase so much. It is difficult for councils to reduce taxes where, as in the case of my county council, 80% is spent on education, policing and social care.
Joe, Basingstoke

Rather than arguing over whose to blame, we should be working to root out the incompetence and waste in local government. Council-tax - and local government funding - should both be frozen until councils get their acts together and start providing their customers with proper services at competitive prices.
David Moran, Scotland/Australia

Council tax bill on a 2 bedroom cottage in a Somerset village in less than � of an acre - �1300 p.a. - 1-mile away, a private house and 40 acres - �1450 per year. Police presence nil - road maintenance and street lighting - where? Neither occupants of the above have children, and both couples work full time to pay their way. It is grossly unfair for the Council Tax system to subsidise those who choose to live on benefits in council paid accommodation.
Jon Jeans, Somerset

I am surprised that it has taken so long for this to become a top story. Of course, it is not only pensioners who struggle to pay the bills, some of us "younger" people do too! My employer has just imposed a 1% pay settlement - my travel season ticket has gone up, my Council Tax has soared and as I am one of those "fortunate" to be paying more in National Insurance my pay in real terms is diminishing.
Shane, UK

For several decades, central government has provided the bulk of local government funds. Whenever the government fails to increase its funding in line with the legal demands it places on the councils, local taxes have to increase by a large multiple of inflation to meet the government shortfall. Since Gordon Brown (on one hand) increased Employers' NIC, while (on the other hand) failed to provide a single penny towards the local councils' NIC, it appears obvious that Gordon Brown is to blame for the council tax increases.
Brian, London, England

Any private business run the way councils are run would fold within six months
Lorraine, St Albans, UK
Having had experience of working inside a Council office all I saw was waste and mismanagement. Councillors more concerned with prestige and jollies than with good management. Managers that had filtered into Local Government that were clearly unemployable elsewhere. Under-worked, overpaid staff constantly off 'sick' on full salary. Spurious internal lawsuits for 'stress' or 'harrassment'. Antiquated, inefficient practices and unjustifiable pay-scales kept afloat by unions. Lucrative final salary pension arrangements and early retirement schemes. And no sense of responsibility to the tax payer. Any private business run the way councils are run would fold within six months.
Lorraine, St Albans, UK

It is not correct to say that every authority got an above inflation settlement last year. 3.5% was the minimum increase, but local councils had to pay the extra 1% national insurance charge plus a range of other 'government controlled' cost increases. Council tax makes up only a small proportion of local government spending.
Timothy Godfrey, Croydon

We, the electorate, are to blame for all these tax rises. We're the ones who vote in these councils and the Government and tolerate what they do in our name.
Debbie, Manchester, UK

The government have fiddled the formula to take money from the south and give it to the so called poorer north. At the same time they are telling councils to spend more on things like education and police. The only way the councils can do this is to charge more. Its galling when the government then try to blame the councils for big tax increases
Ray, UK

Tax rises are resulting from a massive expansion of staff by councils with a reduction in services. Swindon has just escaped from 45 years of bright red policies and the new conservative administration will struggle to reverse the squander mania amongst senior staff. Only a take over by taxpayer councillors will bring about the massive cuts in staff numbers and clearing out of un-required "Services" that are not the function of the council. I want the council reduced to road sweeping and dustbin collection - there is not room for the luxury departments like economic development, euro planning and similar rubbish.
G Hayward, Swindon

The government is in no position to lecture local councils regarding council tax rises. Under this government, we have had record tax increases including 60-70 stealth tax rises, and rises in national insurance. My question is: What has this government done with our money?
Ronnie Sarkisian, Perivale

Any referenda will only be fair if they are limited to those who receive the council tax bills. Otherwise those who don't pay will have the luxury of being able to vote to spend other people's money.
Steve Coulton, Formby, England

This seems slightly unbelievable from the government. If there was one or two councils raising their bills you could see their point of view. However as your stats point out there has been a 13% on average. You can't tell me that all these councils managed their budgets really badly that year as some coincidence. If the Government is going to raise taxes it should have the guts to tell us rather than doing it stealthily through the very unfair council system.
Dominic Smith, Reading, England

Council bills are fast becoming unaffordable for the majority
Anon, UK
I am a manager in the Revenues Department of a Local Authority. It is my staff who face the brunt of complaints as a result of ineptitude by Councillors and the intent of Conservative members to set higher and higher Council Tax charges because it gives them a campaigning tool. It is clear that Council bills are fast becoming unaffordable for the majority. At the same time, it is being made harder and harder for all but the lowest income households to qualify for Council Tax Benefit. It is a system that cannot continue and must be reviewed. Councillors must be forced to justify their spending, but equally, the Government must be more transparent in their funding of Council spending. As with many things, what the Government say and what they do are very different.
Anon, UK

One wonders, all I do know that a large percentage proportion on my latest massive increase included police funding (laughable - not noticed any improvement or presence to the service) and surprise, surprise local council costs - another name for their pension service!
Stuart, Norwich - UK

I can't afford to pay my council tax, even though I get a discount. As a single person I get a 25% discount off my bill, despite using significantly fewer public services than a couple with school-age children. The council tax bill should be evaluated on the number of people (children and adults) in the household, not just the number of adults. That way, pensioners and single people like myself might have half a chance of affording the bills.
M, Surrey, UK

New Labour is busy crowing about how Conservative councils have imposed the highest rises. This is hardly surprising when council budget allocations are made by a Labour government. I do have to say though that I am glad the government has been releasing muggers and burglars from jail to free up space for these pensioners who terrorise our neighbourhoods with their refusal to pay double-digit council tax increases for the third year running.
John B, UK

Who should be blamed? The small, narrow-minded MP wannabees who infect local government and are allowed to run riot with hair-brained schemes which do nothing for the community. Local councils should be made more accountable, and the amount paid should be based on both the value of the house and the number of individuals living in it.
Ian S, UK, Birmingham

Mr Raynsford MP always quotes Wandsworth as being a "bad" council for a 45% increase. Yes, it was a 45% increase, but from a very low base - second lowest in the country. I'd rather have a 45% increase here than a 5% increase in Labour Merton next door which is, in my view, an extremely badly run, expensive council.
Tom D, London, UK

Councils spend far too much money on ridiculous sub-groups and activities indulging the whims of the far left. Councils should deliver good basic services and nothing else. This would immediately reduce Council Tax bills.
Richard Evans, UK




SEE ALSO:
Councils angry at tax-cap warning
16 Sep 03  |  Politics
Pensioner loses council tax fight
30 Jul 03  |  Hampshire/Dorset
Council defends rise in bills
08 Jul 03  |  Cornwall
Pensioner ends tax sit-in
26 Jun 03  |  Devon
Council tax protests spread
26 Jun 03  |  Business
Referendums plan on Council Tax
22 Sep 03  |  Politics


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