As the debate opens on council tax, the borough's politicians all have a view.

Vincent Cable, Twickenham's LibDem MP, states: "The government announced its Balance of Funding Review with proposals for reforming council tax. The expectation is that the government will create extra council tax bands when properties are revalued for council tax assessment. The highest brands will carry a significantly higher rate of tax, probably three times the current top band rate.

"Since the borough is amongst the most expensive in the country in terms of property prices, some residents will face massive increases. Attempts to make an unfair tax fairer in this way will create some severe anomalies. There are some elderly people on low incomes in expensive property who will find that their council tax bill has risen by two or three times.

"At present council tax operates in a regressive way, unrelated to people's ability to pay, and I doubt that the new banding will change this. That is why the tax should be scrapped and replaced by an income based tax."

Tory-run Richmond Council sounds a warning about Council Tax banding. A press release states that reports that new Council Tax bands will be created would be bad news for outer London. The Government is due to unveil a new banding system when ministers publish their local government funding review. People living in more expensive homes could see Council Tax bills soar.

Richmond Council Leader, Cllr Tony Arbour, said: "These proposals would increase the cost of living in the suburbs at a time when we are facing significant pressures on spending with little additional help from the Government.

"The impact of creating new higher rate Council Tax bands would be to increase tax bills and reduce the grant we receive from the Government. London's property boom has increased property prices for home owners on all income levels. It seems grossly unfair that Londoners will face higher bills just because they live in an attractive part of the country.

"We have a high proportion of pensioners who live in high value properties. And the Government must bring forward proposals to help older people on fixed incomes living in their family homes. The plans could threaten the quality of life in Richmond upon Thames.

"The proposed new bands mean that taxpayers will pay more while the Council will see its grant reduced. We fear that with less disposable income local people will have less cash and probably less time to spend on the voluntary and charitable activities that help hold the community together. We will again be urging the Government to recognise the real costs of living, working and studying in London and continue to demand a fair deal on Council Tax."

And in Richmond, prospective parliamentary candidate, Susan Kramer, who is poised to take on the Richmond Park constituency when the sitting MP Jenny Tonge retires, said: "Borough residents could be penalised under the new council tax band options published by the Government, which would be the worst possible news for many households."

She called for a fairer system."More bands with higher council tax for the upper end would drive nearly every elderly person and middle income family out of their homes in Richmond and Kingston leaving us much poorer as a community for their departure," she said.

"We want our neighbourhoods to be rich in different kinds of families - not limited to those who are wealthy enough to live here.The Liberal Democrat call for a local income tax based on the ability to pay is not only much fairer but protects our mixed community. The highest earners might be paying somewhat more than they do today especially in families with two high incomes, but they would have the assurance that if Mum stops work to care for children or when they retire their local tax burden would fall, making it far easier to stay in their homes and their local community."

See the Society Guardian: Council Tax Revaluation

Tuesday, July 20, 2004

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