• Home
  • About
  • Newsletters
  • Conference
  • TMS Links
  • Calendar
  • Log In
  • Register

Room 151

  • 151 BRIEF

    What's New?

  • Trafford predicts £278m debt increase

    February 21, 2019

  • Select committee calls for change to business rates

    February 21, 2019

  • Local government finance system “not sustainable”

    February 20, 2019

  • County looks to raise cash from farm sales

    February 20, 2019

  • High street woes cause revenue dip at council-owned retail park

    February 20, 2019

  • Councils to receive full compensation for waste overhaul requirements

    February 20, 2019

  • Treasury
  • Technical
  • Funding
  • Resources
  • LGPS
  • Development
  • 151 News
  • Blogs
    • David Green
    • Agent 151
    • Dan Bates
    • Richard Harbord
    • Stephen Sheen
    • James Bevan
    • Steve Bishop
    • Cllr John Clancy
    • David Crum
    • Graham Liddell
    • Ian O’Donnell
    • Jackie Shute
  • Interviews
  • Jobs

Raising council tax: Where there’s goodwill there’s a way

0
  • by Guest
  • in Blogs · Funding
  • — 23 Jul, 2018

The cap for triggering council tax referendums must now yield to popular consent to pay more in local charges to improve local services, writes Localis chief executive Jonathan Werran

Keen followers of the political scene may remember the time before Brexit, when the heights of political excitement were predicting how and when George Osborne would pull the levers of patronage to attain the long-term plan he could commit to, that of becoming prime minister.

One failed referendum and one bold career move into local newspapers later, Osborne’s idea of reducing the sauce of annual public expenditure to the 35% state has been overtaken by a slump in economic growth and unexpected government spending. The extra £20bn uncosted funding for the NHS which foreign secretary Jeremy Hunt wrung from Philip Hammond consign this to the great dustbin of fiscal dreams.

But against this challenging backdrop of further tax rises and spending consraints, is there a public will to pay above and beyond the minimum expected? Affirmative is the answer from Localis’s new report, Monetising Goodwill, which found the majority of people would in any case — and regardless of where they live or how they voted — be willing to pay more in council tax or voluntary one-off levies to better fund local services.

For example, people living in the East Midlands — the region most keen to pay extra tax — show a marked preference to pay for better roads and repair potholes. Support for homeless people and faster wi-fi speeds would get the Yorkshire pound. South East residents are keener to funnel extra money to the police than elsewhere, and people living in the North East regard dog fouling as a bigger menace than others.

The sheer diversity of perspectives unearthed from our extensive YouGov polling strongly urges the case that local wants and needs should be reflected in local tax systems.

Following this local pattern of preference, local authorities should use their existing council tax platform to give citizens the opportunity to direct new and existing funding in line with their priorities. This could mean enabling residents to direct up to 20% of total revenue raised to specific services and for achieving certain outcomes.

And following Westminster City Council’s lead, authorities could include the voluntary option to pay higher funding directed to specific services and issues, on top of the core bill — albeit limiting the number of issues to pay for.

This agenda isn’t about raising ever higher taxes and increasing the power of the local state. It does not pretend to be a remedy for the sustainability of local government finances. It is, rather, a creative opportunity to renew and re-cement civic bonds.

To this end, Localis proposes any extra funds raised by voluntary levies should be allocated to community groups for the purpose of delivering local services. Community-led organisations can be entrepreneurial and creative with a vested interest in a way that a council cannot. They are also more likely to attract a higher level of public support for higher contributions raised through hypothecated local taxation.

There is though a rather obvious barrier to be lifted — the referendum cap for triggering council tax votes. During the early years of the coalition, while money from the Treasury could fund a council tax freeze, the imposition of 2% referendum triggers made perfect policy sense. As a solid slug of retail politics, it displayed as good a sensitivity to the cost of living agenda as one could wish to see.

But now the freeze money has melted away into the slush of stop-gap social care funding fixes, this forlorn legacy lovechild of Osborne and Pickles must be sent packing. It’s time for centrally imposed caps on council tax charges to end and for the abolition of referendum triggers enshrined in the Localism Act.

Failing abolition, James Brokenshire as secretary of state for housing, communities and local government, should at least set council tax referendum thresholds at a rate that enables places to set hypothecated taxes and levies more freely.

Like the social care precept, the secretary of state should stipulate that greater freedoms are used specifically for hypothecated taxes and levied and for services and issues that reflect public will. And to that end, local people must be given the right to choose and vote on local spending priorities.

Jonathan Werran is interim chief executive, Localis

Share

You may also like...

  • Buffett on bonds: The Oracle of Omaha opines on fixed income investing 18 Jul, 2018
  • Councils await response after rejecting NHS claims for rates relief running to millions 2 Jun, 2016
  • 85% of LAs freeze council tax 85% of LAs freeze council tax 1 Mar, 2012
  • Richard Harbord: Concern grows over local authority bankruptcy 5 Nov, 2014

Leave a Reply Cancel reply

You must be logged in to post a comment.

  • Register to become a Room151 user

  • Latest tweets

    Room 151 20 hours ago

    Croydon’s Brick by Brick to borrow more council money: London Borough of Croydon’s standalone housing company has pushed back the date by which it will become self-financing after announcing plans to borrow more cash to develop new sites. In[...] dlvr.it/QzKB8b pic.twitter.com/5E1RZyiIyv

    Room 151 21 hours ago

    Councils to receive full compensation for waste overhaul requirements room151.co.uk/brief/#council… # localgov

    Room 151 21 hours ago

    High street woes cause revenue dip at council-owned retail park room151.co.uk/brief/#high-st… #localgov #Bournmouth

    Room 151 21 hours ago

    County looks to raise cash from farm sales room151.co.uk/brief/#county-… #localgov @StaffordshireCC

    Room 151 23 hours ago

    Warrington outlines robust defence of out-of-borough investments: Warrington Borough Council has outlined its reasons for departing from government investment guidance and continuing to borrow to invest in revenue-generating property outside its… dlvr.it/QzJWtt pic.twitter.com/vxCqb5xnKT

    Room 151 23 hours ago

    Managing ill-health risk in the LGPS: Barry McKay provides a health-check on how Local Government Pension Scheme funds can mitigate risks from ill-health retirements. Most LGPS benefits build up gradually during each member’s employment.  However, if[...] dlvr.it/QzJWqk pic.twitter.com/HyRrtUu8dw

    Room 151 2 days ago

    Business rates retention reform lacks rigour says IFS: The Institute for Fiscal Studies (IFS) says that the government’s proposals for reform of business rates retention need further work. The Ministry of Housing, Communities and Local Government (MHCLG)… dlvr.it/QzDVm8 pic.twitter.com/QKNrDyZP74

    Room 151 2 days ago

    Ashfield raises property stake to £104m room151.co.uk/brief/#ashfiel… #localgov

    Room 151 2 days ago

    Barking and Dagenham to double external borrowing room151.co.uk/brief/#barking… #localgov

    Room 151 3 days ago

    A busy and unpromising timetable for local authority finances: Richard Harbord looks at the large amount of central government measures affecting councils due over the next 13 months. Time is running out, the current uncertainty damaging, and the… dlvr.it/Qz81pV pic.twitter.com/FvQbpvz2dn

    Room 151 3 days ago

    Getting to grips with governance: Poor governance can make the difference between local authorities coping and not coping. Aileen Murphy explores what national government should be doing to help section 151 officers carry out their[...] dlvr.it/Qz81kf pic.twitter.com/2tywD1wu7H

    Room 151 6 days ago

    Sutton announces new chief executive room151.co.uk/brief/#sutton-… #localgov @SuttonCouncil

    Room 151 7 days ago

    Spelthorne halts commercial property investment: Spelthorne Borough Council has called time on its controversial programme of borrowing from the Public Works Loan Board (PWLB) to fund commercial property investment. Over the past three years, the[...] dlvr.it/Qyvbrt pic.twitter.com/yECeMm6uUP

    Room 151 7 days ago

    LGPS board considers guidance to avoid conflicts of interest: The LGPS Advisory Board is consulting on whether new rules are needed to avoid conflicts of interest in the governance of the scheme. It has appointed pension adviser Hymans Robertson[...] dlvr.it/Qyvbk7 pic.twitter.com/hLtp4ekKuH

    Room 151 1 week ago

    Eighty percent of councils lack faith in sustainability of local authority finances room151.co.uk/brief/#eighty-… #localgov

    Room 151 1 week ago

    MP criticises county over incinerator project room151.co.uk/brief/#mp-crit… #localgov

    Room 151 1 week ago

    How National LGPS Frameworks are saving funds and pools millions: With more than 247 contracts already let and £105m secured in savings, National LGPS Frameworks have become the ‘go-to-route’ for specialist procurement within the LGPS, according to Leon… dlvr.it/QyqR7k pic.twitter.com/Vc40cgTDjb

    Room 151 1 week ago

    Haringey reserves raid ‘unsustainable’ say officers: London Borough of Haringey has agreed plans to balance its budget for next year by dipping into its reserves and proposing £13.7m of cuts whilst increasing spending on social care[...] dlvr.it/QyqR33 pic.twitter.com/GT8PNPOAmM

    Room 151 1 week ago

    Newham aims to end non-compliance culture: London Borough of Newham has established a new commission to help it get a grip on its financial management after a series of scandals. The new body will assess the[...] dlvr.it/QyplW9 pic.twitter.com/YP1CwMtg1k

  • Categories

    • 151 News
    • Agent 151
    • Blogs
    • Chris Buss
    • Cllr John Clancy
    • Dan Bates
    • David Crum
    • David Green
    • Development
    • Forum
    • Funding
    • Graham Liddell
    • Ian O'Donnell
    • Interviews
    • Jackie Shute
    • James Bevan
    • Jobs
    • LGPSi
    • Mark Finnegan
    • Recent Posts
    • Resources
    • Richard Harbord
    • Stephen Fitzgerald
    • Stephen Sheen
    • Steve Bishop
    • Technical
    • Treasury
  • Archives

    • 2019
    • 2018
    • 2017
    • 2016
    • 2015
    • 2014
    • 2013
    • 2012
    • 2011
  • Previous story Investment in shopping centres set for ‘underperformance’
  • Next story Northants’ outgoing 151 issues second section 114

© Copyright 2019 Room 151. Typegrid Theme by WPBandit.

We use cookies to ensure that we give you the best experience on our website. If you continue without changing your settings, we'll assume that you are happy to receive all cookies from this website.OK