A token gesture?

THERE will, inevitably, be winners and losers from the council tax review announced by Eric Pickles, the one-time Bradford Council leader now in charge of local government.

Having pegged council tax increases after bills more than doubled during the Blair and Brown premierships, the coalition is looking at new ways to maintain this freeze.

Those who own second homes will, understandably, be unhappy at the prospect of losing the discount that they now receive – while people living in Band D properties could be £20 better off.

Hide Ad
Hide Ad

This could be construed as a token gesture, but it does, at least, show that the Government understands the pressures facing taxpayers.

Conversely, that empty homes will no longer be eligible for a rebate will put some onus on the banks to think twice about repossessing properties, and allowing them to stand empty, when there is an acute housing shortage.

That said, the measures announced by Mr Pickles do, effectively, scupper Lib Dem proposals to revalue properties – a move that would have left many facing steep increases in their bills at a time when the economic slump is squeezing budgets.

However the system of local government finance will have to be reformed at some point. The evolution of the council tax particularly penalises the elderly and those on fixed incomes. There also needs to be greater scope for proceeds to be spent locally.

Hide Ad
Hide Ad

Take second homes. Many are located in coastal resorts or Yorkshire’s rural heartlands – two parts of Britain traditionally under-funded by existing arrangements. Yet, given that the cost of providing services in these areas is higher than urban conurbations, there remains a case for spending the additional revenue in such communities.