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Homeowners hammered as council tax bills outstrip earnings and inflation

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Published Date:
24 June 2007
HOMEOWNERS in some parts of Scotland have seen their council tax bills double over the last decade, according to new research.
The study, carried out by the Bank of Scotland, found that people in the Shetland Isles experienced a 118% rise in bills since 1997, the highest rise north of the Border. While they were the worst hit, homeowners on average are now paying 51% more th
an they did 10 years ago, which is way above the rate of inflation. Many bills now exceed £2,000 a year.

The study, which covers Tony Blair's entire period in Number 10, shows that when he took over as Prime Minister, people in Scotland paid an average of £651 a year. The average charge this year is £980.

This is lower than the average charge across the whole of Britain, which has now reached £1,080 - a fact largely caused by Scotland's lower house prices.

The 51% average rise in Scotland is higher than the 31% increase in the headline rate of the Retail Price Index, the 44% increase in the price of services and the estimated 50% increase in average earnings.

The study found that residents in East Renfrewshire have the highest council tax bills, with the average charge there £1,247, while residents in the Western Isles have the lowest, with average bills there £735.

People in West Dunbartonshire have seen the smallest increase, with average bills there rising by 21% - the smallest rise across the entire UK, according to the bank.

Scotland appears to have been hit less than the rest of the UK. The highest increases of all occurred in Monmouthshire in Wales, where charges have gone up by 184%. A revaluation of properties in Wales in 2005 may have contributed to the significant rises in some areas.

People living in Richmond upon Thames have the highest bills in Britain, with average council tax charges there £1,665, while the lowest bills are in Wandsworth, where the average charge is £641.

Martin Ellis, chief economist with the Bank of Scotland, said: "Council tax bills in Scotland have increased significantly faster than retail prices over the past 10 years.

"However, growth rates in council tax bills over the past decade have been slower than those in England and Wales."

He added: "The smaller increases in Scotland mean there are now no Scottish billing authorities in the top 30 areas in Britain with the highest average council tax charges. By contrast, more than one quarter of the 30 areas with the highest charges in Britain a decade ago were in Scotland."

The figures are certain to add to calls led by the SNP government to scrap the current council tax, which it claims unfairly penalises people on low incomes who still have to pay out large sums because of the value of their houses.

It wants to replace the charge with a local income tax, under which people would instead be charged on the amount they earned. The SNP has claimed it could limit the tax to an extra 3p on their tax bills.

Last week, the Scottish Parliament narrowly backed the SNP's plans, suggesting that First Minister Alex Salmond does have the necessary support to introduce his plan in the lifetime of this parliament.



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  • Last Updated: 23 June 2007 7:01 PM
  • Source: Scotland On Sunday
  • Location: Scotland
  • Related Topics: Council tax
 
1

Walter Ego,

Durness 24/06/2007 06:11:16

Eddie Barnes, it's not just homeowners - tenants have to pay the CT as well. You should know this.

2

Dodgy Dossier,

No.10 24/06/2007 07:01:24

Why are we still hearing about English moans about THEIR council tax.
From the figures I've seen, the sums are WAY below those chargeable in Scotland.
Anybody know why that is?

3

Auckland Arab2,

24/06/2007 07:56:18

Council tax is a fatally flawed basis for local taxation. Everyone who uses local services should contribute to their cost but should not be ripped off by spend thrift councillors off on flights of fancy. Would this overt raising of tax have been tolerated by the voters on a National scale? Don't think so - hence that's why Labour has increased tax nationally on the fly. We need the Thatcher approach to curbing council spending - CAPS and sur-charges for councillors who fail to abide by these.

4

JayJay,

Glasgow-ish 24/06/2007 08:48:09

Anybody think the Local Income Tax will be any better?
Since, sure as tomorrow is Monday, local government has no idea how to do anything other than spend more than it did last year, I fail to see how the proposed rate of 3% will stay put at 3%. For that to happen, inflation/pay rises would need to stay the same, and Councils would need to submit stand still budget for here to eternity.
Truth is, whatever the solution to ramrodding the public for Local Taxes, it is going to be deemed unfair by someone...lets face it, who lines up to be taxed. But the SYSTEM never changes does it. Just an inexorable rise in tax, year on year, until finally someone cotton on to the fact that this simply is not sustainable.
So, come on Alex, get some balls and go after some real reforms in council land. You can start by asking why we have so many local councils, and if we really need all of them. You can move on to allow councils to keep what they save from their annual budget - as opposed to the current spend or lose mindset which hardly encourages thrift.
But such radical free thought seems to be beyond the capabilities of any politician. And meanwhile, we all continue to dig deep.

5

Lachie Todd,

Edinburgh 24/06/2007 09:39:28

According to another HBOS survey, during the same period U.K. house prices have increased by 143 per cent. In some parts of London, property prices have DOUBLED and even TREBLED in value! However, all are still paying the ORIGINAL Council Tax property band as there has not been a revaluation. The present house price boom throughout Scotland confirms these HBOS statistics.

IF, some Council Tax payers are unable to afford these increases then simple Kenysian economics dictates that a home owner should sell up, trade down, and use the not inconsiderable surplus.
Lady Thatcher herself is a great proponent of living within one's means!

However, IF, the Tory Party had not made such a botch of the Community Charge(POLL TAX) we would not be in the present situation! Several hundred millions of pounds of Community Charge are still uncollected after almost 20 years! Some English and Welsh Councils have already had Poll Tax amnesties?

Many also forget, after being levied in Scotland for 4 years, the Community Charge was abolished on the eve of its introduction to England and Wales after mass civil disturbances in these countries!

The Council Tax was a desperate, ill thought out alternative for which you have Major and Heseltine to blame!

Lachie Todd

6

BigRed,

east07 24/06/2007 09:40:19

#2 - English council taxes are generally higher than in Scotland, though the spread of rates is also greater. That means the lowest rates look incredibly low, but the highest ones are eye poppingly high. The average amount paid is above the Scottish rate though (I think around £100 higher).

7

jkr,

Lochwinnoch Greater Glasgow 24/06/2007 10:43:26

Hopefully the new Executive will get rid of this discredited council tax. I hope the Conservatives will get a grip and support it as it goes through the parliamentary stages.

8

Car Driver,

24/06/2007 10:46:06

ive missed the first 2 payments for this years ct and alreadly its been handed over to scott and co, Edinburgh Council are hard at it and i am begining to wonder just how close their relationship is with scott and co, yes 2 payments behind and an extra 10% added on so Edinburgh Council's pals get their comission.................. something stinks !!!

9

Euan,

Edinburgh 24/06/2007 11:14:56

Something has to be done about the council tax, thats for sure.

For the amount we pay, the services we recieve in return are WAY off the mark.

And they keep putting up the price year on year!!

Its a bloody disgrace.

A much fairer way of local taxation has to be found, and fast.

10

Jay Kay,

Dunfermline 24/06/2007 12:29:25

What alex needs to look at in the cooncils is why are there sooooo many managers.

Personally I have four in my department alone and I dont know yet what any of them do bar invent more and more proceedures for me to follow.

These guys are earning upwards of 45K a year I know at least one senior manager earning 86k its all wrong.

As a council employee I beleive in the public sector to give value for money compared to an outside private consultant who has his investors interests at heart.

We used to give the people of Fife a great deal for thier hard earned money.

Now though all we do is cover our arses and promote more and more paperwork with more managers doing zero, they produce zero, they do very little and thier end product is an attempt at a more efficient office.

TOTAL F*CKING BOLLOCKS the government needs to look at the structure of every department and look at the management hierarchy and basically top slice the whole lot of them.

Lets have more Engineers and Architects, these are the guys who design and run projects, these are the guys who control finances not the managers.

We need to sack these muppets now, Alex Salmond are you listening.

11

Herb Aishus,

Border 24/06/2007 12:33:17

Yep, rubbish bucket only emptied every 2 weeks instead of every week, OK a garden waste collection on alternative weeks, but if you are in a flat and no garden that's as useful as nipples on a duck. Two of us in the house, both working so the lavvy only gets flushed evenings and weekends so where's the equality with a non working mum with 3 kids in the house all day or the retired couple who flush all day every day - I'm not getting at them, merely looking at a comparison. (What I have overlooked is the rising costs of junket travel for councillors - sorry, that, together with all the pay off cash for those who decided not to continue their 'careers' in local government must account for a LOT). Maybe Tommy Sheridan got it wrong with the poll tax - at least there was a bit of levelling out of the costs of what the council describe as provision of services (however shoddy it might be) and those who used it more, paid more.

12

Eric,,The Viking,, (AKA,,/,,Trojan )),

24/06/2007 13:51:36

This is precisely why the SNP is determined to replace the ever more discredited Council Tax with a local income tax.

And the sooner the Scottish Parliament support the SNP and put an end to the idiocy of the unfair council tax.... the better.

13

subrosa,

24/06/2007 15:08:56

#2 In England the water rates are billed separately from the council tax. In Scotland both are included in the same bill. Does that help?

14

subrosa,

24/06/2007 15:12:26

#6 Can't agree with you there. Council tax rates vary across England as they do across Scotland and they are around the same levels. In fact many English moving here say they are lower here. I think the water rates are lower here but can't verify that.

15

walter,

24/06/2007 15:22:59

The council tax is unfair, I do not think that many would disagree with that and the sooner it has been given the boot the better.
To introduce a LIT in place of the CT is like jumping out of the frying pan and into the fire in the terms of fairness.
The article says "It wants to replace the charge with a local income tax, under which people would instead be charged on the amount they earned" (the amount they earned) in other words only those people who are employed and paying income tax will be charged under LIT, those who do not pay income tax will not be charged no matter how much their household income is.
The article also says "The SNP has claimed it could limit the tax to an extra 3p on their tax bills" this is false it indicates that it will be 3p on their total tax bill but is infact 3p in every pound that tax is paid on so instead of paying 22p in the pound it will be 25p (23p instead of 20p when income tax is reduced).

16

Keke,

Aberdeenshire 24/06/2007 16:26:28

I think we already knew this.

17

robbie runciman,

Lydd 24/06/2007 18:38:11

Hmmm, agree with 1, we all pay homeowners or not. What is galling is that there are reductions if you own more than one property. This makes the tax regressive. One of the main beneficaries if this are MPs -so do not expect a change.

As a single chap, I object to only having a third knocked off the tax. In my experience famillies are greater users of council services-especially through social services and schools.

Why should I help pay for someone else to bring up their Kids?

In Kent we still have Grammar schools, a policy that means we also have crap secondary moderns that do not push kids enough. I have no vote on schhol status - I am not a parent, but I still pay for it!

18

Agent 99,

24/06/2007 19:06:55

And your point is, Mr. Barnes??

This is a poorly written article. No shortage of research, for a change, but the plethora of statistics fails to bring out any coherent message other than that taxes are higher today than they were 10 years ago. Not exactly Einstein material then.

Here's the cracker...

"This is lower than the average charge across the whole of Britain, which has now reached £1,080 - a fact largely caused by Scotland's lower house prices."

Wrong. It's got nothing to do with house prices. Council tax, Mr. Barnes, is charged according to the banding of the property. A property is banded not by what someone paid for it, or what it would fetch on the open market today, tomorrow or next week, but on the basis of a valuation carried out by, you guessed it, council valuers. A system not unlike the police investigating complaints against the police.

The fact that the author of this piece cannot get so simple a fact straight throws the rest of the article into question.

When will get journos who take the trouble to have their material peer reviewed?

19

Agent 99,

24/06/2007 19:12:59

[20] Robbie; Why should I help pay for someone else to bring up their Kids?

That's how our society works. Certain things are funded collectively, like defence, social security, education. Regretably the politicians will never leave the basic list alone so you get state encroachment...but that's another matter.

If you feel so strongly about that then perhaps its time to consider becoming a hermit. There are some very desirable caves up the west coast.


 

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