The attempt by Margaret Thatcher's Conservative government in the late 1980's to
introduce what was commonly called the
Poll Tax - more properly the Community Charge -and the ensuing riots driven by
the unpopularity of the tax is generally held to be one of the chief reasons
for Maggie's demise. Yet it always struck me - and still does, come to that -
that the Community Charge was a more equitable way of assessing and collecting
local taxes than either the rates that preceded it or the current Council Tax
system. Since the system of collecting local taxes known as rates - which began
life as the poor rates in the seventeenth century, being replaced by the
general rates following the 1925 Rating and Valuation Act - was based solely on
the notional value of a property, a family of five wage earners would pay the
same as a single pensioner living in an identical property next door, despite
using more significantly more local services, and despite having an income
several times greater than said pensioner. It seemed to me to fit the
principle, "From each according to his ability, to each according to his
needs" but many people disagreed.
The problem with the Community Charge was less the principle
than the implementation and large families in small properties saw their
liability to the local authority increase significantly. With some
justification, the tax was seen as saving money for the rich and moving the
burden of paying for local services onto the poor. The principle remains sound,
however - a family of five will generally consume more local services than a
person living alone, however neither will use more street lighting nor be more
of a burden on the council's planning department than the other: so perhaps the
time is coming for another change in the way in which local taxes are
calculated and collected. And I say that because of moves that are afoot in the
London Borough in which I live that suggest that in the future council tax
bills may be more tailored towards the services we consume and the degree to
which we use them.
Only 12% of Barking & Dagenham's revenue comes from Council Tax, while Children's Services represent the largest outgoing. |
Now, I have often sung the praises of my local council who,
although they require me to pay them the best part of £2,000 per annum, have
always provided a good level of service. The streets are clean, the street
lights work, my refuse gets collected (albeit the refuse collectors went on
strike last year for what seemed like an eternity)and generally the council get
on with things with little fuss or bother. And last year, when I was clearing
out my mother's house after her death, they came and took away stacks of bulky
waste, although they do make an additional, nominal charge for that, which is a
direction they - and other councils - are increasingly likely to take. Despite
it being extremely difficult to avoid paying Council Tax - in 2014-15 it had a
collection rate of 97% - it covers less than 25% of council expenditure, with
central government funding and business rates covering the other seventy-five
percent. But with cuts in government funding and income from business rates
subject to fluctuations as businesses prosper or founder, local council
services have come under increasing pressure and all local authorities are
faced with the unpalatable alternatives of either having to increase council
tax or cut services - or both.
At present my local council collect my domestic waste weekly
and my recycling and garden waste fortnightly; next week is the last week when
my garden waste will be collected this year and the service should resume next
March. But when - or if - it does, I may find myself paying extra, as the
council have started a consultation on whether residents would be prepared to
pay extra for garden waste collections. And although they estimate it would be
as little as £1 per week, I figure it would probably be considerably more than
that, since the most efficient way of running such a scheme is to sell
residents garden refuse sacks - and the more sacks you use, the more you will
pay, or if they continue with the wheelie bin system then I guess I will be
paying more than most as due to the size of my front garden (thanks to the
large tree in it), I need two wheelie bins, into which I still sometimes
struggle to fit all my grass cuttings and the leaves the tree drops. The
proposal to charge extra for garden waste collection has predictably provoked
many comments on social media, with opponents arguing that they already pay
enough in Council Tax and supporters taking the viewpoint that many people pay
for the service despite not using it, such as those who live in flats or other
properties that have no gardens.
Come Autumn and our wheelie bins get filled with leaves. |
I realise that in many other boroughs paying extra for
garden waste collection is the norm, but stepping down the road of individual
pricing for any service that some people might describe as optional could lead
to a rather difficult debate about what an individual pays for versus what they
consume. Council tax pays for schools, roads, libraries, children's services
and adult social care: it also contributes towards the cost of the police and
fire service, and while many of these are core services to which we all should
pay, I would argue that some are optional extras. I no longer have children
attending school in the borough; in fact since both of my children attended
secondary school in a neighbouring borough, it is seven years since I had a child
in a school in my borough. So just as the tenant of a flat on the tenth floor
of a tower block who generates no garden waste feels they ought not pay for
garden waste collection when they have no garden, should I be expected to pay
for services like schools or libraries that I don't use? But schools and
libraries are essential services, you may say. Well, so is garden waste
collection - if you have a garden, because by charging extra for it, councils
risk residents refusing to pay and
fly-tipping their waste, which then costs even more to clear.
Fly tipping is a major problem. This mile long tip appeared overnight near the Dartford Crossing in November 2014. Photo: East News |
But whether it is individual prices for optional services,
privatising services, or sharing services and resources with neighbouring
boroughs, the way in which local authorities raise income and how they spend it
will change. Council partnerships with private enterprises are increasingly the
norm, while merging some services with those in other boroughs is also an
increasing trend. The changes to the landscape of local government services
that are currently in train are being delivered incrementally and at varying
rates to varying degrees across the country rather than in one fell swoop, yet
they are possibly even more fundamental
than the introduction of the so-called Poll Tax. Unlike the protests against
the Poll Tax, I doubt there will be protesters marching on Barking Town Hall
towing green wheelie bins.
No comments:
Post a Comment