Monday 11 January 2021

Starmer urges Government to stop Council Tax Hike

 




Starmer urges Government to stop council tax hike

 Labour leader Keir Starmer has urged Boris Johnson and Rishi Sunak to stop their planned council tax hike and to help protect family incomes.

 Writing in the Sunday Telegraph, the Labour leader said: “Boris Johnson and Rishi Sunak’s council tax hike will hit families right at the very time millions are worried about the future of their jobs and how they will make ends meet.”

 The Labour leader accuses the Government of breaking its promise to do ‘whatever is necessary’ to support councils by forcing them to hike taxes for households across Britain.

 Under the Government’s proposals, households living in Band D will face an average rise of £91 next year under plans. It means council tax will have risen by 33% under the Conservatives.

 Band D properties in 36 council areas, including Dorset, Nottingham, Lewes and Hastings and the Communities Secretary Robert Jenrick’s own local authority of Newark and Sherwood face rises of over £100 per year. Households in higher bands are likely to see an even bigger increase.  

 Labour analysis reveals that the 30 areas with the highest council tax rises overlap with eleven key Parliamentary seats held by Labour until 2019 and two seats held until the 2017 General Election.

 In a direct message to the Prime Minister, Starmer writes: “give councils the support you promised, drop your tax increase and provide families with the security they need.”

 In his article, Starmer speaks of his personal mission to make Labour ‘the party of family.’

 “Under my leadership, Labour will be the party of family. That means putting family first in everything we say and do. This will be the foundation of what I will do in government, so we can give families across Britain the security and opportunity they need to prosper.”

 

 

Notes 

 ·       As at July 2020, the average Band D council tax set by local authorities in England for 2020-21 was £1,818, which is an increase of £68 or 3.9% on the 2019-20 figure of £1,750. Local Authorities care providing authorities were allowed to raise council tax by up to 4%. A 5% rise this year across Band D would see bills rise to £1908.90, an average rise of £90.9.

 Source: https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/905425/Council_tax_levels_set_by_local_authorities_in_England_2020-21.pdf

 ·       Estimated council tax increases are based on the average Band D council tax rising 5% in line with the Conservative Government’s decision at the Comprehensive Spending Review to base this year’s increase in local government spending power on a 5% increase in Council Tax overall. The final rise in Council Tax will depend on the exact implementation by local authorities.

 ·       According to the Comprehensive Spending Review Local authorities will be able to increase their council tax bills by 2 per cent without needing to hold a referendum, and social care authorities will be able to charge an additional 3 per cent precept to help fund pressures in social care (making a total of 5% overall).

 Source: https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/938052/SR20_Web_Accessible.pdf

 ·       More than 85 per cent of the potential core funding increase next year is dependent on councils increasing council tax by up to 5 per cent next year, as set out in the Comprehensive Spending Review. 

 Source: https://www.local.gov.uk/lga-responds-provisional-202122-local-government-finance-settlement

 ·       The Conservative Government has cut £15 billion in central government funding for local government over the last decade. According to the Local Government Association, councils in England will face a funding gap of more than £5 billion by 2024 just to maintain services at current levels. The LGA estimates that the Government will need to provide an additional £10.1 billion per year in core funding to councils in England by 2023/24 in order to plug the existing funding gap and to meet growing demand pressures. 

 Source: https://www.local.gov.uk/ps10-billion-spending-review-investment-needed-protect-and-improve-local-services

 ·      The average Band D council tax set by local authorities in England for 2011-12 was £1,439 (2010-11 £1,439). A 5% rise this year across Band D would see bills rise to £1908.90, a 33 per cent rise since 2011. 

 Source: https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/6625/1870215.pdf