There are 2 item(s) tagged with the keyword "local tax".
Could the impact of COVID-19 on local authority finance be the straw that finally breaks the camel’s back for many frontline services already emaciated over the past decade by austerity?
APSE has written extensively in the past about budget reductions which have seen authorities lose 60p in the pound from funding provided to them by Government since 2010. This has had a hugely disproportionate impact on the frontline neighbourhood services that the public value the greatest. These huge cuts, compounded by significant rises in demand, across council activities, have squeezed the life out of these often non-statutory services.
With the demand for social care budgets increasing hugely in the current period this will squeeze other frontline services even further. And whilst the public recognise the importance of social care to many of the most vulnerable and needy people at present, the vast majority don’t experience social care in their daily lives.
APSE’s own public opinion polling carried out with Survation shows that most people really value refuse collection, public realm, parks, roads and street cleaning. It is my belief that this love of the frontline has only been enhanced over the past few weeks when these weary warriors have stepped up to the plate yet again and delivered, when everyone else has been placed in a state of suspended animation by lockdown. It would be a real tragedy for local government if this greatly increased recognition of the role it plays in keeping society functioning in the toughest of circumstances is quickly lost by a failure to fund properly these very services in the future.
It’s time for an honest conversation about tax in the UK. Successive Governments have pledged not to increase the tax burden on the public in their manifestos and then once in power they put in place policies that do the opposite.
Just look at the shift that has taken place in tax revenues since austerity started. In 2010, local government’s core spending power of £50B was around 80% funded from local tax yield with a further 20% subsidy from direct taxation. Fast forward to 2019 and the £46B or so that local government will receive in core spending power in the coming year, is outstripped by the £52B that will be raised in local taxation. Local taxation is now clearly subsidising national spending.
Local people and local businesses are now paying significantly more in council tax and business rates for the services they receive at a time when many of the neighbourhood services, that determine the look and the feel of the place, are being decimated. Add to this the fact that fees and charges have also either been introduced or increased, in order to try and hold local services together and we really are testing people’s patience.