Warning over plan to increase Council Tax in England

Labor urges the Prime Minister to “drop government plans to force local councils to raise council taxes” amid the Covid pandemic.

The party will use an Opposition Day debate in the House of Commons on Monday to urge Boris Johnson’s administration to “provide funds to the councils to fulfill the government’s promise to do whatever it takes to help the councils fight Support Covid-19 “.

Labor claimed that around a million workers in England “could become unemployed once they are hit by Boris Johnson’s £ 100 tax increase”.

The government’s coronavirus job retention (vacation) program is expected to be completed by the end of April. The Bureau of Budgetary Responsibility forecast unemployment will peak at 2.6 million in the second quarter of this year, up from a million since the fourth quarter of 2020, Labor added.

Citing estimated tax increases per region, Labor warned families living in Band D of an “average increase of £ 93 next year”, adding that it would be “toughest” in the Northwest, according to the Center for Progressive Policy think tank and northeast, which have a high proportion of people on vacation.

The shadow communities and local government secretary Steve Reed said, “The Prime Minister’s £ 2 billion tax bomb will hit many distressed families at the worst possible time – as many are getting their P45s.

“This government shouldn’t get families to pay the price for broken promises to support councils.

“The Prime Minister must get rid of this illiterate tax hike – and if he doesn’t, Conservative MPs must do the right thing and vote with Labor to protect families’ incomes and help secure our economy.”

The second Labor Opposition Day debate on Monday called on the government to maintain “all existing employment rights and protections,” including the 48-hour week, and to set a schedule by the end of January to “end the fire and recruit laws.” To introduce tactics “”.

The party warned that abolishing the 48-hour week could be the “thin end of the wedge and risk hours that get out of hand for hundreds of thousands more workers if a reverse 15% increase occurs”.

Shadow Business Secretary Ed Miliband said: “The 48-hour week is an important right for workers. Getting rid of this hard-won protection would be the thin end of the wedge, which would cause working hours to rise, safety and wellbeing to be compromised, and many people less time to spend with their families. “

In December, community secretary Robert Jenrick announced that councils in England could raise taxes by up to 2% without a referendum and increase social security by up to 3% by 2021/22.

Mr Jenrick also insisted that local authorities be able to decide whether or not to enforce the increases, claiming that their core purchasing power will increase by up to 4.5% in cash under government plans.

The debate takes place amid speculation that the Treasury Department is considering raising corporate tax in the budget in March and considering revising the council tax.

The government changed both proposals.

A spokesman for the Department of Housing, Community and Local Government said: “Council tax rates are a matter for the locally elected officials, but we understood that councils should take into account the financial circumstances of their residents.

“The government does not prescribe an increase, but sets an upper limit above which a local referendum is required. This protects residents from excessive elevations. “


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