MALCOLM MOSS MP

NORTH EAST CAMBRIDGESHIRE

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PRESS RELEASE
November 20, 2007

Give residents in North East Cambridgeshire a veto to stop council tax rises says Malcolm Moss MP

Council tax hikes should be put to a vote say Conservatives

Local residents across North East Cambridgeshire will be given new powers to stop high council tax increases, under proposals announced by Conservatives.

In a new initiative on council tax launched by David Cameron, and welcomed this week by Malcolm Moss MP, any local authority - including fire and police authorities - that wanted to introduce a high council tax increase would have to receive the support of local people in a referendum. Council tax bills have soared across the country under Labour. In Fenland, overall bills have risen by 123% since 1997, from £614 to £1,370 on a Band D home.  These increases are a direct result of the Labour Government reducing grant to local authorities at the same time as widening their service responsibilities and obligations considerably.

Under the proposed plans, the local authority would have to explain to taxpayers why they wanted to raise taxes by so much and they would have to show what they would do – a shadow budget – in the event of their plans being rejected. Tax referendum ballots would be sent out with the annual council tax bill. If people voted against the high rise, the rebate would be credited to them at the end of the year, to avoid the cost of posting out new bills.

In addition to the plans for direct democracy, Conservatives have pledged to:

·          Relieve councils of the unfunded burdens, regulations, inspection and red tape that have forced up council tax, through decentralisation and deregulation.

·          Give councils more freedom and discretion to fund their own local priorities not Whitehall’s, ending the ring-fencing of local authority budgets.

·          Give power back to local people, such as through the abolition of the unelected and unwanted regional assemblies, allowing more local discretion on planning and licensing, and introducing directly elected police commissioners.

·          Scrap Labour’s ongoing plans for a council tax revaluation in England, and abolish council tax inspectors’ rights of entry into people’s homes.

Malcolm Moss MP said:

“Council tax has become so unpopular under Labour because of the year on year rises that have been cooked up by Gordon Brown. We need to end Labour’s fiddled funding and burdens which have forced up councils’ costs. Local councils deserve more freedoms.

“But these new powers need to be backed up with a stronger voice for local people, so they have the final say on whether or not local taxes are going to rise. We need to replace state control with social responsibility and democratic accountability.”

 

PUBLIC TO HAVE VETO ON COUNCIL TAX RISES

David Cameron has announced that the next Conservative Government will use direct democracy to control council tax bills, through council tax referendums.

Any proposed excessive council tax rise above a set rate would require the approval of a local referendum. This will ensure there is a greater connection between the spending decisions of town halls and the wishes of local residents.

The independent campaigning group, the Taxpayers’ Alliance, have welcomed the policy proposal, remarking:

“A system like this would be a great step in the right direction - localising tax control, increasing democratic accountability and bringing a number of other benefits... Instead of the everlasting blame game, or simply allowing councils to force higher taxes on their electorates without adequate explanation or consultation, let’s do what democracy is about: ask the people. It’s our money, and it is us who will be receiving the services it pays for - on principle, taxpayers deserve the final say on whether council tax should rise.”

http://tpa.typepad.com/campaign/2007/11/welcoming-democ.html

 

POLICY DETAIL

·          The trigger threshold for an excessive rise would be set by Parliament. In Wales, it would be set by the National Assembly for Wales. Conservatives would consult with local government and the public over the precise level of this threshold.

·          Each precept that makes up a bill would be assessed separately. The proposals would apply to all precepting authorities, including the Greater London Authority, fire authorities and police authorities, in England & Wales.

·          The yearly council tax bill sent to householders would ask taxpayers whether they support any excessive increase. If there was a proposed high increase, the bill would include voting form(s). The electorate would be the same as per local elections.

·          Councils and precepting authorities would be required to prepare a ‘shadow budget’ in case their above-threshold tax plans were rejected. In the event of the referendum coming down against the increase, the consequential reduction in council tax would be credited to residents’ bills at the end of the financial year to avoid the cost of re-billing.

·          Councils would still be subject to the regular elections – providing a democratic check against councils which closed or cut popular frontline services in response to losing a referendum.

·          There would be a de minimis threshold in absolute cash terms. This would prevent a tiny cash terms change (but large in percentage terms) forcing a referendum – such as for most parish councils with a tiny precept.

·          Conservatives will consult over this proposed mechanism, including whether there should be a minimum turnout or threshold for the referendum to be valid, and whether there should be different trigger for different types of authority.

·          We will also consult over whether the test should consider previous below-threshold council tax changes. If a council held its council tax to below the threshold, or frozen the level for a few years, it should not be penalised if it subsequently needs to increase its rate by a slightly higher level, otherwise, the system might serve to discourage councils from cutting or freezing council tax.

 

COUNCIL TAX RISES UNDER LABOUR

The table below shows the overall rise in council tax under Labour in England and Wales.

Band D council tax bill

1997-98

2007-08

% rise under Labour

England

£688

£1,321

+92%

 

 

 

 

East Midlands

£705

£1,348

+91%

East of England

£639

£1,349

+111%

London

£651

£1,258

+93%

North East

£782

£1,380

+77%

North West

£798

£1,345

+69%

South East

£641

£1,331

+108%

South West

£667

£1,352

+103%

West Midlands

£701

£1,297

+85%

Yorkshire & the Humber

£710

£1,286

+81%

 

 

 

 

Adur

£687

£1,432

+108%

Allerdale

£748

£1,401

+87%

Alnwick

£734

£1,369

+87%

Amber Valley

£732

£1,370

+87%

Arun

£659

£1,373

+108%

Ashfield

£762

£1,489

+95%

Ashford

£626

£1,285

+105%

Aylesbury Vale

£644

£1,346

+109%

Babergh

£652

£1,354

+108%

Barking & Dagenham

£635

£1,278

+101%

Barnet

£665

£1,350

+103%

Barnsley

£674

£1,278

+90%

Barrow-in-Furness

£790

£1,435

+82%

Basildon

£678

£1,417

+109%

Basingstoke & Deane

£644

£1,247

+94%

Bassetlaw

£760

£1,490

+96%

Bath & North East Somerset

£708

£1,318

+86%

Bedford

£762

£1,443

+89%

Berwick-upon-Tweed

£735

£1,370

+86%

Bexley

£624

£1,362

+118%

Birmingham

£794

£1,189

+50%

Blaby

£719

£1,340

+86%

Blackburn with Darwen

£835

£1,381

+65%

Blackpool

£729

£1,359

+86%

Blyth Valley

£715

£1,337

+87%

Bolsover

£767

£1,431

+87%

Bolton

£787

£1,321

+68%

Boston

£661

£1,293

+96%

Bournemouth

£612

£1,330

+117%

Bracknell Forest

£584

£1,210

+107%

Bradford

£714

£1,206

+69%

Braintree

£639

£1,358

+113%

Breckland

£602

£1,327

+120%

Brent

£554

£1,299

+135%

Brentwood

£631

£1,345

+113%