Large Council Tax increases caused by Government NOT local Councils
An Audit Commission Report issued this week lays the blame for high Council Tax rises in the Totnes Constituency fairly and squarely on the Government. An investigation has shown a direct comparison with high Council Tax rises and low Government grants.
The report clearly states that Government Ministers have favoured the Labour heartland's of the North and the Midland when distributing Government cash, leaving local Councils no alternative other than to raise Council Tax to compensate.
75% of local Government finance is currently distributed from Whitehall and 25 % raise by Council Tax . Any reduction in Government funding results in a fourfold increase in Council Tax to compensate.
Commenting on the report Totnes Liberal Democrat Parliamentary Spokesperson Mike Treleaven said:
' This Audit Commission Report confirms what Liberal Democrats have been saying for years - the real reason for Council tax rises is a determined effort by the Government to sell the West Country short. Government Ministers are to blame for large Council Tax rises and not our local councillors.
It is outrageous that that Government grants can be manipulated in a way which allows funds to be diverted away from Devon to other parts of the country. Successive Conservative and Labour Governments have perpetuated this unfair grant system which has resulted in people in the Totnes Constituency paying huge Council Tax bills. This tax is not based on people's ability to pay and results in untold hardship for pensioners and low wage earners. Remember, average wages in Devon are 20% below the national average.
The Liberal Democrats have a fair and just solution to the problem - scrap the Council Tax , replace it with a local income tax based on people's ability to pay and ensure that Government funding reflects the needs of the community. It is a disgrace that the needs of people in the Totnes Constituency are placed second to placating Labour voters in the North and Midlands.'