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Wandsworth Council is considering a substantial increase in council tax, proposing a rise of £958 for a Band D property, which would represent a 94% hike. This proposed increase has been strongly criticized as “outrageous.” The Conservative-led local authority has indicated that the increase is necessary unless the government revisits recent cuts in funding. According to the council, changes introduced earlier this year are set to reduce its funding by £84 million annually over the next three years.
During an extraordinary council meeting held on Tuesday, these tax rise proposals were discussed, though a definitive decision is expected only in early 2024. The Ministry of Housing, Communities and Local Government (MHCLG) defended the funding changes, describing the reforms as essential for modernizing what it called an “outdated” local government finance system. Historically, Wandsworth has kept its council tax comparatively low. While many London boroughs have seen Band D council tax surpass £2,000, Wandsworth’s current charge on such properties stands at £1,020.35, split almost evenly between the council’s share (£509.84) and the Greater London Authority precept (£510.51).
In response to the government’s decision to cut funding, Wandsworth Council, alongside Westminster, Richmond, and Kensington & Chelsea councils, is exploring the use of the Sustainable Communities Act to challenge the proposed changes. These funding adjustments, part of the Fair Funding Review 2.0, aim to redistribute resources from certain councils to others. Due to funding cuts, the government has granted power to five London boroughs—including Wandsworth—as well as Windsor and Maidenhead Council in Berkshire, allowing them to raise council tax beyond the usual 5% cap for a two-year period.
At the council meeting, Peter Graham, Conservative deputy leader and finance cabinet member, expressed reluctance about the potential tax increase but attributed the situation to government policy. He stated, “This administration recognises the financial pressures that many households already experience and the extent to which they are already taxed by other means. Higher council tax will not be easy or welcome. We do not regard it as fair and will continue to challenge the government by every possible means. Residents can help us with that challenge by responding to the consultation that was launched in the last week or so.” Opposition voices criticized the proposal sharply, with Labour councillor Simon Hogg calling it “outrageous” and “unfair,” and Labour MP Fleur Anderson urging the council to reverse what she described as “this huge council tax increase.” The MHCLG emphasized that while councils set their own tax levels, they should prioritize taxpayers, asserting that the government is working to ensure fairer funding allocations without abrupt financial shocks for any area. The council’s final decision on council tax will be made in February
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