| The council tax, which was introduced in 1993 replacing | | | | council tax and suggested them to be more efficient in |
| the community charge, has more than doubled since | | | | their delivery of services. |
| 1997. This year in April it is due to a further four per | | | | Ten local authorities are likely to be able to cut down |
| cent rise, announced the Local Government | | | | on council tax according to the government. Among |
| Association on Thursday. The rise is likely to make it | | | | them is Hampshire, which the government think could |
| even more difficult for people to cope with their | | | | save its householders 36 pounds a year, or increase |
| personal finances since also living costs are increasing | | | | the standard on service without raising the tax. |
| with higher prices on food, fuel and homes, making it | | | | According to the Guardian the local government |
| difficult for many to pay off debts and homeowner | | | | minister's statement has infuriated the Local |
| loans. | | | | Government Association, which said, "According to the |
| By the same time as the LGA announced the rise, | | | | Treasury, councils are the most efficient part of the |
| ministers said that it would not be justified. The local | | | | public sector. If Whitehall were to follow the example |
| government minister John Healey even believed that | | | | set by councils, then perhaps people could look |
| the tax could instead be reduced if local authorities "cut | | | | forward to a cut in their income tax." |
| some waste" in the way they delivered their services. | | | | Council tax is the only tax that is decided by local |
| Council tax, which is the least popular tax according to | | | | government, but it only contributes a small proportion of |
| a poll made by YouGov since many people think that it | | | | the councils' revenues. The majority comes from |
| is unfair, will rise by average four per cent in April this | | | | central government. It has been criticized many times |
| year. In some councils it will rise even more. One of | | | | during the years for being unfair since it doesn't take |
| them is Hampshire where the taxpayers will have to | | | | into account peoples' incomes. |
| face a five per cent council tax rise. | | | | As alternatives to the council tax there has been |
| Cllr Ken Thornberry, authorities leader in Hampshire | | | | proposals of a system of local income tax to replace |
| said to the BBC, "We are asked to do more and more | | | | it, which is the norm in some European countries, or |
| by central government with less and less. The system | | | | simply to remove it in favour for funding directly from |
| is not sustainable." | | | | central government finances. |
| A viewpoint that the Local Government Association's | | | | The Liberal Democrats advocate a scrap of the |
| chairman Sir Simon Milton shared. He blamed the rises | | | | council tax. |
| in council tax on inadequate government funding and | | | | "We think it should be replaced by a tax based on |
| extra demands on councils. | | | | peoples ability to pay. Under the present system the |
| "The toughest financial settlement in a decade has left | | | | prime minister living in a nice house on 10 Downing |
| councils with difficult decisions to make locally." | | | | Street pays about the same amount as a pensioner |
| The local government minister on the other hand said | | | | living in an apartment in Hackney," said Liberal |
| that local authorities should be able to reduce the | | | | democrat MP Tom Brake. |