Labour have demanded an end to the Council Tax freeze- now they complain that these are the wrong kind of rises…
Politicians lie and if you don’t believe me, ask Alistair Carmichael. We now expect it and are unsurprised by politicians having a distant relationship with the truth. Once upon a time it seemed that a small lie was enough to see a politician having to resign in disgrace. Nowadays even a £350 Million lie can be glossed over as merely part of the cut and thrust of the debate, after all if you are going to tell a lie, make it a big one, right? So in the age of fake news and the big lie, why should I be concerned over a mere £517? That’s less than two days bum warming in the House of Lords after all. It’s because last weekend in the lead up to the May 2017 council elections, The Labour party (Scotland Branch) took to the streets of Airdrie to campaign against recent rises in council tax which were imposed by the Scottish Government. But wait, I hear you cry! Haven’t Labour been demanding an end to the council tax freeze since the SNP introduced it? The answer is both yes and no. Between elections labour have railed against the council tax freeze, except for the period in the immediate run up to elections when they have flip-flopped and supported it, you know, just in case it cost them the election.
Before that, in 2008 they helped to scupper the SNP minority governments Local Income Tax plan; almost ten years later they are now campaigning on the basis that the SNP didn’t scrap the council tax…
The 2008 defeat for the SNP was a solid one and as we have come to expect, the unionist parties were strongly backed by the press and other media, meaning that any attempt to reintroduce a Local Income Tax would receive a hostile reception, and instead eventually led to the formation of the cross-party (sans Conservatives, who declined to contribute) Commission on Local Tax Reform in 2015, which was tasked to explore alternatives to the council tax. Part of their recommendations were to end the present system of council tax and to explore introducing an income based element alongside a property based element, however there were no hard and fast recommendations, and the report acknowledged that each party was liable to have a different answer to the problem.
The Scottish Government have imposed changes to the top four highest council tax bands. Councils can raise council tax on all bands by a maximum of 3%.
Most recent figures show a combined band F-H figure. 2011 figures show that only 1% of households are in band H. In 2011 that figure was recorded as 120 homes in North Lanarkshire.
In the meantime, it recommended a transitional approach and acknowledged that a long term solution would not be done overnight. The recent end to the council tax freeze has seen the first move towards that, with the higher rated bands (E-H) seeing rises of between £2 and £10 a week. That’s between 28p and £1.42 a day. Or if you are Labour that can be summarised as a 22% hike which will cost you £517 a year. Because what they are concentrating on is that top figure. Some council tax payers WILL pay an extra 22%, but I’m concerned that this is the only figure they’ll be using. Telling people on the doorstep that their council tax will rise by 28p a day doesn’t make people’s blood boil. Telling them that the Scottish Government is hiking their “council tax” by 22% (or £517) possibly will, even more so when you aren’t ascertaining if they are affected or not..
So who will be paying that £517 a year rise? According to Scottish Government statistics from 2011, 1% of householders in Scotland are in Band H homes which are valued (at 1991 rates) at over £212,001. For North Lanarkshire that was 120 homes, and unless there has been any great change, a spate of lottery wins for example, that figure isn’t going to be radically different, perhaps (and I’m being generous here) there are around 200 homes valued at over £212,001. That’s the reality. 1% of what may be broadly viewed as the wealthiest households will see a rise of £10 a week. Yet Labour are saying this figure so often that one might be mistaken for thinking that everyone is being hit with a 22% rise.
From the reconvening of the Scottish Parliament in 1999 until 2007, Labour ran the Scottish Parliament. At the same time Labour were in charge at Westminster and controlled the majority of Scotland’s local authorities. In that time council tax rose year on year. In 2007 the average Band D council tax payer, on average income in a middle of the table house was paying 30% more council tax than they had in 1999, while some of the higher bands apparently saw as much as a 60% hike! We aren’t talking 120 homes here, we are talking about every council tax payer across the board, paying more every year to keep Labour local authorities in the manner to which they had become accustomed to. Had Labour remained in power that pattern of continual tax rises would have no doubt continued, hitting everyone, across the board, rich and poor alike. I’d say that a 22% rise after 10 years to 1% of council tax payers is pretty good going in comparison, and I wonder how Labour can complain, considering they spent years stating that the freeze only benefited the richest in society!
The term Doublethink was coined by George Orwell in his novel 1984, and it refers to the ability to hold and espouse two contradictory views at the same time. Scottish Labour are demanding that the general rate of income tax be raised for everyone in Scotland by 1p, while complaining that the four highest bands will see a rise of between 7.5% and 22%
From the BBC:
Labour said someone on a salary of about £30,000 a year would pay less than £4 a week extra under its plan.
But someone on the same £144,687 wage as the first minister would pay an extra £28 a week (£1,447 a year), it said.
So Labour are comfortable taking an extra £208 off someone earning about £30,000 a year, but are outraged if that same person has to pay an extra £2 on council tax? Or that someone earning £140,000 a year is paying an extra £10 a week council tax yet fail to mention that they would pay an extra £28 in income tax if Labour were in government? I wonder if their outrage is more at the fact that they see people not being squeezed for every last drop of cash they can get or if their outrage is because they simply aren’t in power and can’t effect change to the extent they would like.
Since losing power in Scotland, then in the UK, Labour have become the most petty of oppositions. While in Westminster they will happily support the Tories on many issues, or abstain when not wanting to appear to be openly supportive, they have no such trouble in Scotland. If the SNP propose it, we’ll oppose it is their mantra. Opposition for opposition’s sake is as bad as unrestrained majority government, and their opposition in 2008 to council tax reform killed off what was a real chance to radically change the system. Their hubris is a major stumbling block to reform, and if they could overcome that then it’s possible that we could see a more progressive and radical form of taxation introduced in Scotland. Unfortunately there appears to be no sign of that day coming any time soon, and it looks as though decoding Labour doublethink will be a necessity for some time to come.
Council Tax Bands
Average Band D Rates 1996-2014
Local Tax Commission Report
Chargeable Dwellings in Scotland by band (2011)
2008 Defeat of SNP Scottish Local Income Tax
Scottish Labour Income Tax Plans
George Foulkes: Council Tax Freeze only helps richest
Wings Over Scotland: Summary of Labours various Positions on Council Tax