05 April, 2006

Other campaign launches

Well we’re all at it. You have had a chance to see my priorities (more policies to come) and now the Lib Dems and Labour have launched their campaigns. I must say neither are going to score heavily on the honest stakes.

The Lib Dems claim that they will scrap council tax, sounds great. They are rather less keen to tell you that they are still rather keen on local income tax. This would mean that a nurse and a teacher both on average salaries for their professions would be between £500-£700 a year worse off here in Lewisham. Hands up who thinks that teachers and nurses don’t pay enough tax already.

Labour are trying to pursued you that you will pay less council tax under them too. They are using a bit of creative accountancy - using 'average council tax per dwelling'. Labour councils tend to have lower property values and therefore have more houses in lower council tax bands the average amount of tax is lower. Independent commentators, such as Professor Tony Travers and Radio 4’s John Humphries have said the only accurate way to compare councils is to contrast similar council tax band bills and funnily enough Conservative councils do much better when comparing like for like.

Despite Labour's fiddled funding, Conservative councils still cost you less and deliver better public services. In 2006-07, Conservative councils charge £81 a year less on Band D bills than Labour councils and £88 a year less than Liberal Democrat councils.

7 comments:

Ellee Seymour said...

The Beeb rang me today and asked what Cons Party was doing for launch in the Eastern Region - the answer is nothing. Labour have a big launch today, no idea why we are sitting still.

Did you see Iain Dale asking on his site about blogging councillors?

James Cleverly said...

I do sometimes feel that Central Office can slip into the "Westminster Only" mindset.

It is worth remembering at the same time that everyone was saying that the Conservatives were finished we were dominating in local, regiaonal and european elections.

There's life in the old dog yet.

Paulipoos said...

Why do the Cons say that Local income tax is bad? If tax is raised on ability to pay it is surely fairer? Does 500-700 worse off figure mean that someone is unfairly subsidising them teachers etc...
I've no axe to grind here, rather am just interested in the views.
I'd be against it as it takes away the ability of a family to choose to be prudent or spend by choosing to move from a cheap to an expensive area or vice versa.

James Cleverly said...

Paulipoos,

The Lib Dem local income tax proposals are full of holes and contradictions. Here are some things worth thinking about.

If the tax level is set nationally, local councils will have no control over their income levels this goes completely against the “more should be raised locally” argument that the Lib Dems put forward.

There should always be incentives in a tax system to spend tax revenues wisely and to create downward pressure on tax levels. Councils should try to find ways of reducing the local tax burden, under these proposals there will be no incentive to be prudent.

Already rich councils will get the most money. Kensington and Chelsea will get much more than Lewisham because they have higher salaries in K&C. I think that Lewisham could do with the money more than K&C, don’t you?

It will encourage rich people to have multiple houses. If you only pay tax on one salary but use council services in a number of areas you will be quids in.

It will hit multiple income households the hardest. Two parents with two children who have started work will find their tax burden going through the roof. As the cost of starter home in London and the South East has risen sharply over the last eight years they are caught in a damned if you do damned if you don’t situation.

You will notice that the Lib Dems never talk about attempts to spend more wisely or to reduce the local tax burden, or oppose Labour’s rebanding (which put local taxes up in Wales). The local income tax idea is just rearranging the deckchairs on the Titanic.

Paulipoos said...


There should always be incentives in a tax system to spend tax revenues wisely and to create downward pressure on tax levels. Councils should try to find ways of reducing the local tax burden, under these proposals there will be no incentive to be prudent.


Good point they already waste way too much money. Chief Execs get pay close to banking equivalents, but have none of the preasure that "real" industry employees suffer.

Paulipoos said...

....and I've never seen a council employee publicly sacked for poor performance even though the councils are riddled with lazy incompetent people (personal experience!!)

James Cleverly said...

If everyone in public office had the phrase "Remember whose money you’re spending" at the forefront of their minds we would be in a better position.