Council Tax freeze trap

People should be aware of the political scheming that goes behind a Government offer for a freeze in Council Tax.

Basically, what the Government agrees to do for one year is subsidise a Council Tax rise. Therefore, although it appears as if Council Tax has been frozen, when that subsidy is no longer there the year after, there will be what appears what looks like a Council Tax rise.

In addition, if a Council finds itself needing to increase Council Tax the year after, there will be an automatic double increase in Council Tax, when in reality all that has happened is a single increase from the year previous added to the removal of a Central Government subsidy to freeze Council Tax.

Councils that wish to freeze Council Tax are therefore much better off if they do so in their own accord and not take up the national Government’s offer of subsidising their Council Tax rise.

“This is Typical Tory”

Normally blog posts are about the author’s views. But today I draw upon what a local Dudden Hill resident said to me this weekend.

I was out talking to a local resident in Neasden on Saturday conversing about what the Government is doing with regards to public spending.

“This is typical Tory”, he said, reverting back to his memories of the Thatcher Government in the 1980s. “These cuts are all ideological, they just want to cut, cut, cut.”

With most of the cuts yet to even come into force, he said “it’s already affecting people.”

….. and it is. It’s been hard enough for people to cope with the impact of the recession, but to have cuts to services, to benefits for people who may have lost their job during the recession, and the forthcoming rise in VAT, will be hitting people that need help the hardest.