Thursday 16 October 2008

Scrap Council Tax?

That sounds 'controversial' (imagine me doing that annoying index finger gesture). However, now would be a fantastic time to rethink the existing council tax system.

Welsh councils have just been given a below inflation cash settlement from the government. While this doesn't sound to bad at first it doesn't take a genius to work out that, since councils are paying more for stuff like the rest of us, they will have to cut spending and jobs to make ends meet. Or, just as unpopular and unfair, raise council taxes. In fact council tax increases are abysmal- as it is the hardest pressed (usually the hardest working in my experience) who notice council tax increases the most. Cutting spending is equally dire. Less money for schools, for police, for refuse collection, leisure facilities, and all the other really important things councils pay for.

When governments cut council budgets they effectively pass the buck for spending cuts onto elected bodies that are not central government- thus spreading the blame when Primary schools need to close, or the lollypop lady gets the sack.

Spare a thought everyone for poor Blaenau Gwent- who this year voted out the New Labour council, and have been handed a measly 1.7% increase in spending, which is like a 3.8% cut (I am not saying these two events are connected or that the outgoing Labour council acted out 'slash and burn' tactics. I am not saying the same thing happened in Newport either. These are just scurrilous rumours.)

With greater powers for the Welsh assembly, and a Plaid government heading it up- we could see off this situation by introducing a local income tax. Plaid has long argued for this. Like conventional income tax local income tax would ensure the rich pay 'slightly' more for local services and the harder pressed less. The current system, based on anachronistic valuations of your house, is not really fair, and it leaves no room for equitable targeted increases directed at those most able to pay. In this way negative effects of a recession in Wales could be mitigated with Plaid in power.

So scrap council tax- of course not- rethink it- yes.

13 comments:

Cibwr said...

Labour are resolutely opposed to this because some working families will pay more - it is clearly a fairer system because it is based on ability to pay, but Labour have long abandoned any pretense of fairness.

Chris Paul said...
This comment has been removed by a blog administrator.
plaidcasnewydd said...

clearly working families sometimes* pay more in income tax too, but it is counteracted in tax credits and so forth. the same could easily apply to a local council tax.

Cibwr said...

And in a fair system those that can afford to pay more should. A household with several wage earners and a higher disposable income should pay more than people with lower disposable income. A local income tax is a fairer system that the crude method of the current Council Tax. Taxation should not be decided on the basis of it it would offend some people but should be based on the ability to pay and fairness.

Rhydian said...

Interesting post here. Plaid Cymru's Fairness Commission has been busy researching the area of local taxation, especially with regards to inequality. I've added a link to your blog on ours at Bontnewydd.

plaidcasnewydd said...

cheers for the link- I have reciprocated- great site by the way-

Unknown said...

Your .....

"With greater powers for the Welsh assembly, and a Plaid government heading it up"

A nightmare of 1950's Socialist proportions, with politicians playing the supply side mechanism, it would be Wilson/Callaghan all over again.

plaidcasnewydd said...

Stonemason- I note from your profile that you have a distaste for Welsh Nationalism.

But not for British Nationalism? I have a profound distaste for that racist and reactionary dogma.

Welsh Nationalism- like Irish, Scottish, Iberian styles, and South American brands of the same, is founded on a democratic imperative. What part of that don't you like- the principle that all people should have sovereignty over their own destiny? or the bit that argues that the sections of the South East of England have no historical right to legislative power, and prosperity, often at the expense of the rest of the island?

answers on a a postcard too...

david h jones said...

nice blog. why don't you link yourself to the Plaid blog feed?

http://www.plaidcymru.org/content.php?nID=745;lID=1

plaidcasnewydd said...

Thanks David- I think I have done that now! Hopefully my tech skills have withstood this challnge and all posts are now being fed that way *fingers crossed*

Unknown said...

plaidcasnewydd

Not a distaste for Welsh Nationalism, a phobia, some might say irrational others extreme, fear that is.

I am averse to Nationalism of any flavour.

plaidcasnewydd said...

a fear of right wing nationalism is fair enough, I have the same thing.

I just think it is a sign of political immaturity and ignorance to lump all nationalisms together when clearly, on a domestic front- the SNP are poles apart from the BNP for example. Saying that nationalism is bad is like saying that so much post enlightenment political development is 'dangerous'.

You don't mention all nationalism in your profile though. You single out Welsh ...

Unknown said...

Your "a sign of political immaturity and ignorance to lump all nationalisms together ........ etc"

The BNP are particularly extreme I admit, and then we read the bile of supporters of other nationalist groups, including SNP & PC, it is all unpalatable.

Your "You don't mention all nationalism in your profile though. You single out Welsh ..."

I vote in Welsh elections, my phobia would probably extend to others were they to stand in the constituency I vote.