‘Local tax to fund local services should be a vital part of local democracy’ – Alex McLuckie, GMB Scotland
John Swinney is wrong to make light of the impact of ‘draconian’ cuts to budgets for Scotland’s councils, says a leading trade union. Continue reading GMB: Revenue must be raised to blunt impact of ‘draconian’ cuts
Dear Editor
The freeze on Council Tax by the Tory government was seen by many as a good move to help people; many others said look into the why and the consequences of that action.
The average saving brought about by the freeze was around 50p per week; the shortfall in council income would be made up – but not fully – by a government grant. This money could only be spent on issues approved by the government, with councils having no control, and that is why many people raised the questions ‘why?’ and ‘what consequences would there be?’
Government policy is to cut public services and controlling their finances: the council tax freeze was a step in that direction.
It now seems, at last, that councils are beginning to understand the government’s intention to break local services, decision-making and control.
Councils everywhere will have to pressure the Scottish Parliament to end the council tax freeze and work towards the abolition of the council tax itself, introducing a new fairer tax. In the meantime we have to make sure councils do not attempt to impose large increases but to look at other ways of easing the burden on their communities, for example:
A Tourist Tax, as in other countries
Private schools to pay tax on their income by abolishing their status as charities
Loan deals made by the Council to be renegotiated
These ideas among other things
A.Delahoy
Silverknowes Gardens
On the eve of Edinburgh’s crucial budget meeting, JIMMY BURNETT argues that the SNP government must end the Council Tax freeze – NOW
Local Government is in crisis. And it is a crisis for which councils bear little or no responsibility.
The Scottish Government has made successive cuts in support for local government, culminating in this year’s savage £550 million reduction. This coupled with the continuing imposition of the SNP-enforced nine year long council tax freeze, has forced local councils, like Edinburgh, into implementing cuts on a scale, never before envisaged.
And to make matters worse, the council tax freeze has seen the better off benefit by three times as much as people at the bottom of the scale – and of course the poorest section of society, who receive full or partial council tax relief, save not one penny.
In addition, as pointed out by Unison, councils, in dire need of alternative resources, have partially plugged the gap, by increasing service charges. Charges which of course, hit the lower paid harder, as the recent “ Close the Gap” report highlighted.
Since 2007, 40,000 jobs have gone in local authorities across Scotland.
Vulnerable and older peoples service have been particularly hit. 13,000 fewer people receive a Home Care Service than was the case a mere six years ago. Service charges for vulnerable people have risen by 11.5 million since 2010.
Here in Edinburgh, the Council is being forced to inflict almost £90 million cuts on crucial services. Yet they cannot even consider raising their council tax , without immediately receiving further cuts in resources from the Scottish Government.
Lets have a quick look at the figures. A council tax rise of 3% in Edinburgh would raise 7 million, a relatively small sum, but still enough to make some contribution to saving crucial services. This would cost Band A households 45p per week, Band D householders 67p per week and Band H householders – those in the highest valued houses – £1.35 per week.
Surely not too much to ask, when people are dying in Edinburgh while waiting for care packages to be provided?
But there is a catch. A 3% rise would in reality, unless the Scottish Government chose to lift their penalty system, would raise precisely nothing for services: the Scottish Government would immediately claw back £7 million from the council. So much for local democracy and accountability!
Since 2,007, the Scottish Government, have chosen to earmark a staggering £2.5 billion to finance the council tax freeze. This is public money. Money being spent on services , but only if councils agree to freeze their council tax. As a result councils across Scotland have been denied their democratic right to raise taxes locally and be accountable to the electorate for that rise.
So the council tax freeze is unfair. The better off have had savings three times the level of the less well off.
The council tax freeze has deprived councils of their democratic right to raise much needed resources for local services.
The Scottish Government-imposed council tax freeze is anti democratic, as it removes local accountability.
Even at this late stage, the Scottish Government, AT NO COST TO THEM WHATSOEVER, could choose to end this unfair freeze. And they could, and should, allow councils to raise their tax with no penalty clawback.
But they are unlikely to do so. And have said as much. This is an election year, and therefore, it appears, that because they believe the freeze to be popular, they are prepared to see services sacrificed, jobs lost and people suffer.
And the irony is that they appear to be able to do so, with virtually no criticism, whilst it is councils, who they are forcing to make cuts, who are bearing the brunt of the ire of the general public!
Jimmy Burnett was Housing and Finance Chair of Edinburgh District Council
Today (1 April) is day one of the Westminster government’s controversial welfare reforms. The Scottish government pre-empted the changes with two statements on the eve of the changes:
If the UK Government proceed to impose their plans for the bedroom tax on Scotland then Scotland must get its fair share of funds to deal with both the human and financial impact, Welfare Minister Margaret Burgess said yesterday.
In a letter to the UK Welfare Reform Minister Lord Freud, Mrs Burgess (picured below) demanded a fair deal for Scotland to address the potentially devastating impact of the bedroom tax, which is set to impoverish families and individuals.
The Scottish Government is completely opposed to the bedroom tax, which will affect 16,000 families with children in Scotland, but if UK Ministers proceed with cuts then Scotland must get its fair share of Discretionary Housing Payment (DHP) funding, says Mrs Burgess.
Despite both Scotland and London having the same number of households hit by the bedroom tax, Lord Freud is set to award London with £56.5 million of DHP compared to only £10 million in Scotland.
Welfare Minister Burgess said: “The bedroom tax is a socially divisive measure that will increase social inequalities across Scotland. It’s a policy that the Scottish Government is totally against as it hits our most vulnerable citizens in these already challenging economic conditions.
“This is a policy devised in London on the basis of housing benefit increases and overcrowding. However, in inflation-adjusted terms, 93 per cent of the housing benefit increase is attributable to the situation in England whilst London has almost two and a half times the level of overcrowded households compared to Scotland.
“We have consistently made that case to UK Government Ministers that we are opposed to these cuts – if they proceed to impose their plans then Scotland must get its fair share of funds to deal with both the human and financial impact.
“The small levels of DHP in Scotland is woefully inadequate and unfair to deal with the impact and scale of this policy.
“Civic Scotland is united in opposition to the bedroom tax and this Government has already taken action to strengthen the protection against eviction for rent arrears in advance of the introduction of the tax. From 1 August 2012 we brought pre-action requirements for rent arrears into force to ensure that proceedings for eviction is always the last resort.
“We are also providing an extra £2.5 million to social landlords for advice services to ensure there is support on hand for people who will lose housing benefit due to the under occupancy measures and other housing benefit cuts being introduced by Westminster from April.
“The UK Government’s agenda is completely at odds with the values of the people of Scotland and the aspirations that this Government has for our nation. Only through independence can Scotland have the levers required to create a welfare system that is aligned to Scottish needs and values.”
Thousands of vulnerable people in Scotland will be protected from increased Council Tax bills following the UK Government’s abolition of council tax benefit this week, Cabinet Secretary for Finance, Employment and Sustainable Growth John Swinney announced yesterday.
Around 560,000 people will receive support to ensure they are not affected by the UK Government’s 10 per cent cut in funding for Council Tax Benefit successor arrangements.
The Scottish Government and local authorities in Scotland are working in partnership to invest £40 million in 2013/14 to bridge the funding gap and mitigate the impact of the UK Government’s benefit cuts.
Mr Swinney (pictured below) said: “Hard working and vulnerable people are having to bear the brunt of these Westminster benefit cuts. Instead of protecting our poorest households, Westminster has responded to this recession by imposing deeply damaging welfare cuts which will make it far harder for people to meet the rising cost of living.
“To ensure households across Scotland do not face additional burdens the Scottish Government and Scotland’s councils are providing £40 million in 2013/14 to ensure that around 560,000 people in Scotland are protected from this reduction.
“Whilst Council tax bills will be increasing in many areas of England as a result of benefit cuts we are using the limited resources we have to ensure vulnerable people do not have to face increasing bills.
“We are determined to do everything that we reasonably can to help those who need it most, however we cannot meet every Westminster cut. We are making available an extra £2.5 million to social landlords to help them ensure that people affected by housing benefit changes have the advice and support they need.
“And we are providing £5.4 to organisations such as Citizens Advice to help those affected by benefit reforms. This extra support will assist social landlords in their efforts to engage directly with affected tenants and seek to identify ways in which they can deal with the impact of the changes.
“These unjust policies show why we need the powers of independence to protect vulnerable people rather than simply trying to cushion the blows in Scotland. It would be far better to control benefits and welfare so unfair policies like abolishing Council Tax benefit are not even considered, let alone implemented. “
