7.56% is real tax increase in Council budget

7.56% is the real tax increase residents are facing this year. Directly, residents are going to be charged a 3.95% Council tax increase. However, with all of the hikes in other fees and charges and the introduction of new fees planned by the Conservative Cabinet, the real figure is 7.56%.

New and increased charges in this budget include: the introduction of charges for on-street parking for disabled drivers; increases in charges for services for older people; an increase of 56% for residents’ parking permits; increases in park and ride fares; extensions to other car park charges; and a 10% increase in garden and bulky waste charges.

This Conservative budget appears to have a low Council tax rise, but when all the other charges and fees are taken into account, the real burden on residents is much higher.

The budget will hit vulnerable people with high charges; it will punish drivers, without improving traffic flows; it will delay, put off or abandon important environmental measures, such as same-day collection and extending recycling; and it will exacerbate problems through cuts to the Council’s youth and other services.

The Liberal Democrats believe this Tory budget of service cuts and increased charges is fundamentally flawed. We have fought hard for improvements, and will be proposing an amendment which is intended to reduce the burden on older people and the vulnerable, to help protect services for young people and to put environmental protection high on the agenda.

By trying to claim a low Council tax increase on the one hand and introducing new fees and increased charges on the other, the Tory Cabinet is driving our authority into the sand, putting its head in after it and blaming everyone else.

Make Landlords of HMOs pay Council Tax or Business Rates

Cllr Shaun McGall recently signed a petition asking the Prime Minister to "Make Landlords of HMOs pay Council Tax or Business Rates."

The Prime Minister's Office has responded to that petition and they stated:-

"All property is assessed for taxation on the basis of its primary usage. Where it is used as a person's permanent residential accommodation it is classed as domestic and subject to the council tax. All other property, apart from certain exempt classes like agricultural premises, is treated as non-domestic and is subject to business rates.
Houses of multiple occupation (HMOs) are treated as domestic property and are subject to council tax. However, it is the owners of HMOs, not the residents, who are liable for council tax. The Government has no plans to make owners of HMOs liable for business rates. To do so would mean treating them differently from other domestic property.
Properties occupied solely by students, regardless of whether it is a HMO or not, are exempt from council tax. This exemption is designed to benefit students, not landlords, because, in general, students are not normally entitled to income related benefits such as housing and council tax benefit.
The distribution of formula grant to local authorities in England takes account of the circumstances of each authority's area and its relative ability to pay council tax, expressed in terms of the council tax base. The calculation of a council's tax base does take account of exempt student properties. Other things being equal, the smaller the council tax base of a council's area, the larger its formula grant. This effect is modified, however, by the application of grant "floors"; that is, a guaranteed minimum percentage increase in grant each year on a like-for-like basis."

To see the actual petition click here.

Cllr McGall is obviously disappointed with this response from the Labour Government. Communties like Oldfield Park in University towns and cities across the country are being affected by the growth in numbers of HMOs and the associated issues of: bad landlords, unkept gardens and properties, late night noise, increased pressure on parking, poor refuse and recycling management by some tentants and changes in the business and retail mix to cater for this section of society.

The issue isn't about students but the over concertration of HMOs with a small geographical area. The national planning law on Use Class Orders must be changed to allow local councils to reflect local concerns and set limits on the number of HMOs in a particular street, or geographical area.

Central and local government most act to promote sustainable, balanced communities in which long term residents and tentants in HMOs can live together without street upon street turned over to the buy-to-let market.