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More council tax support needed for low-income households
Next month Herefordshire Council will decide whether to raise council tax by a proposed 4.99%, as it tries and plug a potential budget gap of up to £16 million caused by the coronavirus pandemic.
The raise is broken down as a 1.99% rise in core council tax and a precept 3% rise to support vulnerable people. For the average band D property this means an extra £6.54 a month.
The raise would create a budget of £320 million for the coming year, including spending of £80 million on council-maintained schools.
But the proposed rise comes at a time when many households are also struggling because of the coronavirus pandemic. People on furlough have had their wages cut and many others have been made redundant. The little increases we see here and there can add up to a lot and council leaders have to think carefully about the proposed increase in tax.
THEY NEED TO DO THREE THINGS:
👉 Broaden the scope of eligibility for council tax reductions, to include those people who have been furloughed for a minimum time period, and more support for people on low incomes.
👉 Approve the proposal for a voluntary Community Contribution Scheme for those that can afford to pay more. This money should be ring-fenced to fund residents' priorities and divided equally between poorer and richer areas of the county. Residents must also be allowed to decide what this money is spent on.
👉 The council must be outspoken in demanding more money from central government. Since 2010, local authorities across the country have seen a huge cut in income from government and have been expected to work out for themselves how to plug the gap. This isn't sustainable, and the 'keep calm and carry on' attitude is politically timid and isn't good enough. Councils must band together to openly demand more.
Council tax needs significant reform. Working class households get a raw deal and pay proportionally more than is fair.
It is time the wealthiest in our society dug deeper into their pockets and contributed more.
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