Feb 2010 26

Earlier this week, the Local Government Association (LGA) released their annual survey of council tax forecasts. The report is based on just over 100 draft budgets, so it's not comprehensive, but it's normally a pretty reliable snapshot of the tax changes to come. The sad thing is, the LGA's reporting of their findings celebrates mediocrity and utterly ignores the best shining examples of good practice in local government.

The headline figure is that council tax nationally will rise by an average of 1.6%. If you look at the country excluding London (where freezes are quite widespread) that figure is 1.9%.

This means that yet again, council tax is rising – despite the recession, the widespread redundancies, the millions of pay freezes and the many pay cuts. Indeed, it is rising to the highest level ever.

What is the LGA's headline, though? "Lowest council tax rise ever".

Gosh – all the people around the country who are struggling to pay the bills are going to be ever so grateful to their beneficent council for being generous enough to increase tax yet again.

The LGA often claims that local government gets an unfair rap from the public – but this smug celebration of tax rises is a good example of why council tax is Britain's most unpopular levy, and councils are widely despised for increasing it. A tax rise at a time when people are suffering economic hardship is something to be ashamed of, not something to boast about.

The really sad thing – on top of the misery that further tax rises will bring for many – is that as well as praising the mediocre let-down of yet more tax hikes, the LGA neglect utterly to praise those councils who have done the right thing and cut taxes.

If, as the LGA claim, it is so difficult to control spending, then they should be heralding these councils which have managed the Herculean task of cutting spending and reducing taxes as veritable superheroes.

But there is no mention at all of Hammersmith & Fulham's amazing four years in a row of 3% tax cuts. Nor do Windsor & Maidenhead get congratulations for introducing the largest council tax cut ever – 4%. Not even Three Rivers' 0.5% cut is acknowledged.

This goes to the heart of two key problems with the LGA. First, they share the misguided assumption in many Town Halls that for taxes "the only way is up". Second, they act as apologists for councils no matter how inadequate their performance. If the LGA is to be of any genuine benefit then they should identify and praise best practice and exceptional performance – not simply rally to the defence of disappointing mediocrity.

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  • anon

    The LGA is almost entirely paid for by the taxpayer through council subscriptions and top-slice funding for its various quangos and programme work. It is meant to be the organisation that unites councils to lobby the government collectively but instead it sees itself as a public advocate for failing councils. Yet the Tories are not promising to get rid of it and Tory councils continue to pay for it. Nice work if you can get it. Never has failure been so kindly rewarded.

  • Steve Robson

    yeah another failure. Tax going up by half of inflation – lets present it as a failure, because thats what the TPA does.
    No prices going up in the private sector are there. All this inflation must be imaginary! And local government costs aren’t rising are they. After all, waste disposal is getting cheaper, were not in a recession and we haven’t got an ageing population or a massive increase in child protection cases following the Baby P case.
    Can’t you ever give credit where its due. Its a bloody miracle that tax is only going up by 1.6% nationally and by virtually nothing in London when you look at the pressures of ageing, child protection, waste disposal and the recession ON TOP OF normal inflation. It will mean massive job losses (that should make you smile) and significant cuts.

  • Charlotte Coupe

    I am extremely concerned that the Council tax increases are almost directly corrolated to the pay rises that have been awarded to the paid staff in my local parish council. I fought to have zero pay increases, in line with the reality of what is happening in the ‘real world’ but to no avail. As a Senior HR management consultant I am also acutely aware of the general level of ‘wastage’ in the Public Sector. There is an alarming failure, nationally, to manage sickness / absence, disciplinary and dismissal cases efficiently or effectively. If this situation alone was thoroughly addressed, it would pay for a reduction in Council tax in virtually every Council.

  • Steve Robson

    there is wastage on HR consultants for a start. Wouldn’t spent a £1 on them.

  • Steve Robson

    come to think of it, Parish Councils are a bit of a waste of space too!

  • Charlotte

    I agree, there is massive wastage on all consultants in public sector – why do public sector employees need so much advice and support to do their jobs! That is why I work in the real world, for individual employees and private sector organisations, where HR is a proper and valued business function, dealing with profitability and productivity. Shame about your negative comments regarding Parish Councils – ours achieves fantastic things for the community and numerous charities and all by volunteers – maybe you should try it.