London Evening Standard - 22 January 2012
Council tax freeze a 'moral duty'
Town halls have "a moral duty" to freeze council tax for families struggling with rising household budgets, the Government has said.
Communities and Local Government Secretary Eric Pickles warned English councils they risked voters' anger if councillors ignored ministers' offer of a one-off handout to cover shortfalls created by the proposed freeze.
His call came as it emerged 15 local authorities plan to defy the Government, despite voters grappling with a squeeze on finances amid rising unemployment.
Mr Pickles said: "Freezing council tax is practical help every councillor can offer their constituents.
"A vote against the council tax freeze is a vote for punishing tax-rises and Labour's opposition to the policy shows their contempt for hard-working households.
"Local taxpayers will remember that decision next time they cast their vote at the ballot box.
"Councillors have a moral duty to sign up to keep down the cost of living. Anything less is a kick in the teeth to hard-working, decent taxpayers."
Prime Minister David Cameron has pledged £1 billion to help English town halls freeze the levy, but councils claim they would still face a shortfall despite the extra money.
Local authorities can snub the offer but must hold a referendum if they want to hike council tax by more than 3.5%.
Whitehall figures show 142 English councils have so far agreed to freeze the levy, but others say raising council tax is the only way they can protect services with cuts in central government grants.
BBC News - 19 December 2011Council tax
At present, central government decides who is eligible for council tax relief and how much they can get.
Following the Local Government Finance Bill, the central pot of money will still come from Westminster - and be cut by 10% - but councils will have control of how it is handed out.
Ministers say councils can then decide how best to save that 10%, and will also have a greater incentive to promote economic growth and employment in their areas in order to reduce the number of people who actually need help.
But in a report in October, the Commons local government committee warned the move was likely to reduce the amount of support available for individuals and make life harder for councils.
The government has admitted that only pensioners protected from the changes and some working age people may have to pay more.
BBC News - 31 October 2011Pickles to allow second home council tax discount cut
Owners of second homes in England could lose council tax discounts, under plans due to be announced by Communities Secretary Eric Pickles later.
Councils would have the power to reduce or remove council tax relief on second homes and empty homes. Second homes currently receive up to 50% discount.
The money would be used to keep overall council tax bills down, he is to say.
Mr Pickles will also announce a review of rules under which "granny flats" are treated as separate properties.
The communities secretary, who is due to announce a consultation on the plans, said he wanted to help "everyday families" with living costs.
He is expected to stress there are no plans to change the rules on council tax relief available for "special circumstances", such as homes left empty after a person has moved into a hospital or care home, or has died.
The communities secretary is also due to announce a review of rules under which tax inspectors treat self-contained annexes to family homes as distinct properties. The move would mean families who house a relative in an annex would no longer pay two bills.
'Protect family homes'
Councils will also be encouraged to offer discounts to householders who pay their bills online.
At present, discounts on second homes and empty properties range from 10% to 50% and can be worth hundreds of pounds a year.
The government said the reforms would allow for a £20 reduction in the annual bill for a typical Band D property in England. The current average for a Band D property is £1,196.
Mr Pickles said: "Under Labour, council tax went through the roof.
"This government has scrapped Labour's council tax revaluation and is helping (to) freeze council tax for two years.
"I want to do more to help everyday families with their cost of living, and protect family homes from tax increases.
"By removing the subsidised tax breaks for empty homes and second homes, we can cut £20 a year off families' council tax bills by treating everyone equally and fairly."
The Guardian - Monday 3 October 2011George Osborne extends council tax freeze for another year.
Chancellor will say he wants to help families and pensioners with the cost of living – a move that will cost the government £800m.
The chancellor,
The freeze in 2013 will cost £800m and extends a Conservative manifesto commitment to freeze the highly visible
On Monday, Osborne will say the money has been found due to underspending across Whitehall. It will be the third announcement in recent weeks from ministers of extra spending due to an underspend elsewhere. The government has also put up a £500m capital investment fund, and the communities secretary, Eric Pickles, announced an extra £250m to help councils reintroduce weekly bin collections.
The freeze next year will save the average family up to £72 a year, on top of the same sum saved last year.
Osborne will say: "I wanted to help families and pensioners with the daily cost of living."
The one-off funding to councils in 2012-13 follows a freeze last year, the first year no town hall has raised council tax since 1993. The average band D council tax – the most common category – remained static at an average of £1,439 a year in 2011-12.
Facing intense pressure over the Treasury's repeatedly downgraded forecasts, Osborne is expected to try to lift consumer confidence by saying that just as the economic crisis was caused by human beings, so it can be solved by human beings. Resolution of the euro crisis would be the single biggest boost to confidence in the EU, he will say.
He is due to leave the conference soon after his speech to attend a meeting of EU finance ministers to discuss the Greek debt crisis.
Osborne will again insist it would not be right in the sovereign debt crisis to divert from the government's deficit reduction plan, and will instead focus on measures to boost private sector growth, such as barring employees who have worked for a firm for two years or less from making an unfair dismissal claim at an industrial tribunal. The current minimum is one year.
The bulk of the government's growth announcements will come later this year, when ministers complete the second phase of its growth review in November.
The overall tone is expected to be serious, and will avoid some of the party-political messages Osborne has in the past included in his conference speeches.
Before the conference, the PM announced plans to build 200,000 affordable homes and create 400,000 new jobs, promising that for every home bought under more generous "right to buy" terms, a new affordable home would be built.
Speaking on the BBC's Andrew Marr show, David Cameron rejected an emergency spending package, saying: "To those people who argue: 'You know a few more billion now would make all the difference', I would make this point: you know, over the next four years, we're going to be spending over £3tn, the government, into the economy. Is it really a good risk to spend a few more billion now and potentially put at risk the low interest rates that are so key to your economic revival?
"You can't suddenly tear up your borrowing plans and your debt plans because it's those plans that give us the low interest rates that are absolutely key for economic recovery. And you know elsewhere in Europe those countries that don't have a plan, they see their interest rates going up 5, 6, 7, 8%".
He admitted "the banks are bunged up with debt, so the banks aren't lending, the builders aren't building, and the buyers can't buy because they can't get the mortgages that they need".
Meanwhile, work and pensions secretary Iain Duncan Smith said he was "very worried" about the impact of inflation on people living off their savings.
He said the fight against inflation had been "pushed into the background" by the battle to control debt and stimulate growth, causing many older people to suffer a decline in their quality of life. Britain could not achieve a sustainable recovery from recession without getting inflation under control, he said. But he also warned that failure to get the national debt down would hit younger people who are now entering the workforce and face a "triple whammy" of factors that threaten to make them the first generation since the war to be less wealthy than their parents.
Published Date: 06 August 2010
BEWARE of council tax scammers trying to get their hands on your cash.
People living in East Lindsey have reported a council tax scam and the district council is asking residents to be on alert.
Some people in the district have been called and told they are entitled to a council tax rebate and, to receive payment, they must give some of their bank account details. Business support manager at East Lindsey District Council, Mark Elsom, explained:
"Customers who are entitled to a refund on their council tax for any reason will be sent their refund automatically, and it will be free of charge. There are however occasions when we need to contact our customers by telephone, and to verify that the call is genuinely from the council you can ask us to confirm information that only we would be aware of. For example your council tax account number and your last payment information." The council says that if you are in any doubt as to whether the caller is genuine you should take the name, hang up and call the customer services team who will be able to tell you whether the call was genuine or not.
Council tax has doubled since 1997
Daily Mail - 17 November 2009
Council tax payers are having to hand over £11bn more a year than when Labour came to power. Official figures have revealed that revenue raised from the tax has more than doubled over the last decade. In 1998, council taxpayers were contributing just over £10bn. This has now rocketed to over £21bn. In some areas, such as the City of London, bills have gone up by 131%. This year council tax averages £1,175 for a typical band D property, compared to just £688 when Tony Blair swept to power in 1997. By next year, the average monthly bill could have reached £120. Opposition MPs said the figures were further evidence that council tax is being used as a stealth tax to pay for Labour's public spending splurge. Tory spokesman Caroline Spelman said: 'These figures show for the first time just how much council tax Gordon Brown has been snatching off people to feed the economic black hole his polices have created. There will be understandable fury as council tax has already doubled and the average monthly bill is due to hit £120 from April, yet Labour ministers are still forcing cuts in services and additional charging.' The new figures were released in a parliamentary answer by officials in the Department of Communities and Local Government. The Tories, who have called for a freeze on council tax rises, have accused Labour of planning a nationwide revaluation of council tax bands which could see bills soar even further. They say families face paying more council tax simply for enjoying nice views or having a patio or off-street parking. Home- owners with views of any kind, patios, conservatories - even a bus stop nearby - could face rises of up to £600 a year. Ministers have denied that there are any plans to revalue homes amid fears of a public backlash in the run-up to the general election. The new figures come just days after it emerged that town halls have pushed up their charges for car parking, school dinners, swimming baths and meals on wheels. With council chiefs complaining that their incomes are falling, local authorities have been trying to raise extra cash from their everyday fees and charges. Increases in charges for services, from sports centres and school buses to rat- catching, have been pushed up by 9% over two years and by 5.5% last year alone. The increases, imposed on people suffering in the depths of the recession, come at a time when inflation is flat and, on one measure, falling. Many Tory councils have managed to limit council tax rises this year by imposing charges, privatising services or cutting jobs. Hammersmith & Fulham in West London, widely regarded as a role model for a Cameron government, has set the pace by announcing a 3% cut in council tax for the fourth year running. Communities Secretary John Denham accused the Conservatives of hypocrisy last night and warned that Tory councils will impose extra charges. He said: 'David Cameron has backed plans for 'Ryanair Councils' where everyone has to pay twice. Once in council tax and once again to get decent local services. The Labour Government has increased the money given to councils by 39% in real terms over ten years. Labour councils are more efficient and are delivering lower council tax.'
Council tax rise capped at 3%
Channel 4 News : 26 November 2009
Council tax bills should not go up by more than 3%, ministers told town halls as they set out the cash local councils will get from Whitehall next year. Local Government minister Barbara Follett said a 4% boost in central funding meant increases in England should be the lowest for at least 16 years. The £76.3 billion settlement, the final tranche of a three-year deal with authorities, had been protected from recession-fuelled cuts, Ms Follett said. She warned that the Government remained prepared to impose a cap on any councils which attempted to impose "excessive" council tax rises and demanded further efficiency measures. "As a result of the extra £8.6 billion made available in this settlement I expect to see the average council tax increase fall to a 16-year low next year while councils protect and improve front line services," she said. "Already many councils are predicting freezes or cuts, so this can be done. "In the current economic climate, the public expects Government to be acting smarter with their money. Keeping council tax under control is a top priority for Government, which is why it will not hesitate to use its capping powers again to protect taxpayers from excessive increases. "But we and the public also expect councils to play their part and find efficiency savings that make each taxpayer's pounds work as hard as possible. "Local government has an excellent record, saving £1.7 billion this year, and next year I want to see them build on that. We are helping them maintain high quality local services in a time of public expenditure constraint through our Total Place pilots and Smarter Government initiatives." Margaret Eaton, chairman of the Local Government Association, said: "Councils are working hard to cope with a perfect storm of falling income and increased demand for services brought about by the recession.
BBC News : Friday, 27 November 2009
Alert over council tax scam calls.
Homeowners in Nottingham have been lured into a council tax scam by bogus callers posing as council staff.
The city council said it has received reports residents have been targeted by people claiming that they have paid too much or too little council tax.
Homeowners have then been asked to provide banking details to enable a refund to be made or to avoid a fine for late payment.
People are warned to report any such calls to the council or police.
Councillor Graham Chapman, deputy leader of Nottingham City Council, said: "We are very concerned about this scam and the risk to our residents.
"We do not approach customers in this way to discuss a council tax rebate and would never ask for banking details from anyone unless the call has been instigated by the resident themselves.
"Our advice to anyone who has concerns or is anxious is to contact the council immediately to satisfy themselves it is legitimate."
BBC News - 14 September 2009
Council tax fraud costs millions.
English councils are losing almost £90m a year through fraudsters claiming the single person's discount on their council tax, says the Audit Commission.
The 25% discount can be claimed by individuals who are the only adult over 18 living at an address.
The spending watchdog also says an estimated 50,000 homes are not available to let to people who need them because of housing tenancy fraud.
It says councils should do much more to tackle fraud.
People falsely claiming to live alone are estimated to cost councils nearly £2 million a week, with other council tax payers meeting the cost of the 25% discount.
In its report, "Protecting the Public Purse", the Audit Commission says local authorities need to crack down harder on fraud and could save hundreds of millions of pounds.
"It has never been more important that councils fight fraud. Every pound lost to cheats is a pound that can't be used for people in real need", said the commission's chief executive Steve Bundred.
The commission also says that housing tenancy fraud has resulted in an estimated 50,000 properties being kept off social housing lists in England.
And it warns councils should be wary of fraudsters looking for jobs in town halls where they can then commit other types of fraud.
It urges councils to urgently reassess their counter-fraud plans, and ensure that staff understand, and have faith in, whistle-blowing arrangements.
Margaret Eaton, chairwoman of the Local Government Association, which represents local authorities in England, says councils are already working hard to tackle fraud.
"Councils are dedicated to bearing down on cheats to keep council tax as low as possible for the vast majority of honest, hard-working tax payers", she said.
Telegraph - 24 August 2009
Households face £50 rise in council tax bills.
Households face a £50 rise in their council tax bills as the recession has left councils with a £900 million black hole.
Historically low interest rates mean councils investments of £25 billion will earn just £400 million this year compared with an expected £1.26 billion.
The shortfalls could be passed onto households with a £50 rise in average Council Tax bills, according to the Liberal Democrats, which discovered the figures.
Julia Goldsworthy, Liberal Democrat Local Government Secretary, said it will put more pressure on people paying already high Council Tax.
“Many families are struggling to pay the bills and any increase in the Council Tax could be a burden too far. The economic crisis is hitting household and council budgets from every angle,” she said.
“The real problem here is that the Council Tax hits those who can least afford it, like pensioners, the most. Because of this unfair system, any attempt to protect local services from cuts through Council Tax rises will put more and more pressure on low income households.”
The Local Government Association said the recession was forcing councils to take a look at almost every aspect of their finances.
A spokesman for the LGA said: “Almost 7,000 jobs have gone in the last six months alone and as the effects of the recession continue to be felt, we fully expect councils to keep on cutting jobs over the course of the next twelve months.
“Despite this, local government has delivered the lowest council tax rise for over a decade and is continuing to make big efficiency savings.”
Mail On Sunday - 02 August 2009
Council tax officials pocket perks worth thousands as they travel world on 'patio tax' fact-finding mission.
Two senior officials responsible for imposing the Government's controversial new 'patio tax' have spent tens of thousands of pounds of public funds travelling to exotic locations to find new ways of raising rates in Britain.
Officials from the Valuation Office Agency (VOA), the organisation which values properties for the purpose of council tax, clocked up the five-figure bill attending conferences in Europe, Australasia, North America and Africa in order to swap tips with foreign counterparts on Big Brother-style databases and 'spy-in-the-sky' satellite surveillance systems.
The pair frequently flew business-class, stayed in luxury hotels and were treated to a round of gala dinners, leaving British taxpayers to shoulder all the costs not met by conference organisers.
Director of Data Strategy Paul Sanderson, who earns £90,000 a year and has a pension pot worth £828,000, and Professor David Tretton, VOA Rating Director, who earns a similar sum, have been identified as making the most trips.
The pair frequently flew business-class, stayed in luxury hotels and were treated to a round of gala dinners, leaving British taxpayers to shoulder all the costs not met by conference organisers.
Director of Data Strategy Paul Sanderson, who earns £90,000 a year and has a pension pot worth £828,000, and Professor David Tretton, VOA Rating Director, who earns a similar sum, have been identified as making the most trips.
Last week, The Mail on Sunday revealed the details of a VOA-inspired stealth tax of up to £600 for householders with scenic views, patios, conservatories and garages.
Topics discussed during the international meetings included Computer Assisted Mass Appraisal (CAMA), the technology used in the sinister new council revaluation database.
Last November, one member of VOA staff spent £1,075 on a trip to Cannes to attend a four-day symposium which included a seminar about the internet entitled 'Bring Facebook, Wikipedia and Del.icio.us in-house: Why consumer software is better than what you are paying for'. The VOA refused to name the staff member.
Meanwhile, in March, Mr Sanderson spent £2,648 of public funds on a trip to Pretoria in South Africa, attending a two-day conference organised by the International Property Tax Institute.
He gave a 20-minute speech at the event, on 'practical problems in the valuation of non-residential properties', and also chaired a 70-minute workshop.
The official hotel where speakers were advised to stay was the Sheraton Hotel. It is described as having 'sweeping views that command all of Pretoria, exquisite marble flooring, and custom-designed furnishings.' Room prices begin at 2,500 rand a night - approximately £190.
Other cities which VOA staff visited for similar events during the last financial year include Toronto, Dublin, Warsaw, Kansas City and Moscow.
In October, Prof Tretton spent £5,137 on trips to Wellington and Adelaide, where he made two speeches. During the Adelaide visit, he attended a gala dinner for 200 at the National Wine Centre. During that same month, Mr Sanderson spent £3,718 attending an International Property Tax Institute conference in Beijing.
He is understood to have made at least one further trip, to New York in February, although a VOA spokesman refused to confirm this.
Suggesting that even he may be bored by the subject of tax, Mr Sanderson gave his speech with the same title - 'Practical problems in the valuation of non-residential properties' - at least twice during his international tour: at the International Property Tax Institute conference in Ottawa in May 2008 and again in Pretoria in March.
During the last financial year, the VOA spent £5.4million on travel and subsistence, up £500,000 from two years ago. In a sign that its globetrotting activities have increased, the agency recently offset 199 tons of carbon, equivalent to 475,000 air miles.
Shadow Local Government Secretary Caroline Spelman said: 'At a time when many hard-working families are struggling to pay their exorbitant council tax bills, it is appalling that the Government's council tax inspectors are burning money by jetting across the world at taxpayers' expense.
'The taxmen are living the high life in exotic locations and marble-lined hotels while pensioners struggle on the breadline to make ends meet.'
A VOA spokesman said: 'These are all the overseas trips that we can confirm at the moment. The total cost of overseas travel is less than 0.01per cent of our operating cost.'
Meanwhile, it is claimed that the VOA is bringing back a £600 poll tax on the poor.
Private landlords say that it is imposing a tax on individual bedsits, usually occupied by low-earning single people, which could lead to their annual council tax bills rising from £250 a year to £650.
Until now, the council tax has not been levied on bedsits which do not have their own toilet or bathrooms. Instead, they share the bill charged to any large property divided into bedsits.
However, landlords say that VOA assessors are using discretionary powers given to them by Ministers to give each bedsit its own tax band - even if it does not have a toilet or bathroom.
