Latest news with #CommunitiesandLocalGovernment
Spectator
7 days ago
- Business
- Spectator
Britain is racing towards a fresh cost of living crisis
The poorest Brits now owe £6.6 billion in unpaid council tax – a record high and up some 85 per cent since before the pandemic. That's according to data released this morning by the Ministry for Housing, Communities and Local Government, which suggests Britain is plunging back into a cost-of-living crisis. What's more, a report also out today by the Centre for Social Justice (CSJ) finds that between 2022 and 2024, some 400,000 more households slipped into arrears, taking the total number of people in debt to their local council to 1.8 million. The CSJ's report also finds that 97 per cent of those in arrears have at least one 'personal vulnerability' compared to 47 per cent in the whole population. Those in arrears are three times more likely to have health problems and twice as likely to be grieving or to have recently lost their job. If spending only goes up, so too must tax Of course there are some people who are simply dodging paying their council tax and Matthew Greenwood, author of the CSJ's report, says they should face 'the full force of the law'. But he goes on to say: Our report shows that the vast majority of those in arrears are not refusing to pay – they're simply unable to, often due to poor health, job loss or other negative life shocks. Under the current rules, missing just one payment can make someone liable for the entire year's bill within weeks, triggering bailiff action and, in some cases, threat of imprisonment. It's an outdated, punitive system that fails to distinguish between those who won't pay and those who genuinely can't.' The CSJ would like to see that punitive system change with more help provided for those struggling to pay their bills. The news, the CSJ says, flies in the face of the government's commitment not to increase taxes on working people. But separate research from the Institute of Fiscal Studies finds that council tax is likely to rise at its fastest pace for two decades. Core spending in local government rose by 3.5 per cent above inflation annually over the last two years and the spending review has it going up by 2.6 per cent a year on average for the next three years. That's a better settlement than many central government departments were granted by the Chancellor, but rather than increased funding from the Treasury, the vast majority of this cash increase will come from a higher council tax take. The message to councils from Rachel Reeves seems to be that they should make use of the maximum allowed bill increase of 5 per cent a year. With the squeezed and derided rich now choosing to leave the country rather than pay ever more tax, the burden for our ballooning state is increasingly going to have to fall on lower- and middle-income earners. The government has now pledged another £30 billion on defence, the winter fuel U-turn has proved ministers do not have the gumption to take on pensioners and now with a large-scale rebellion over Liz Kendall's very modest welfare reforms – that only shave £5 billion off a sickness benefits bill that will rise to around £100 billion whatever happens in the Commons – it seems that our politicians are only prepared to take public spending in one direction. As Paul Johnson of the IFS noted yesterday: if spending only goes up, so too must tax. What we see in today's council tax data is a stark reminder that contrary to polling of the public – who think the rich should just pay for everything – this burden is going to have to fall on poorer and average shoulders. While Britain's overall tax burden is now at a post-war high, individual tax levels remain lower than in many countries with comparable public spending. That gap will surely have to close if the state continues to grow. Yet no political party seems willing to make a serious case for a smaller, leaner state – not even the Tories, who won't support even modest welfare cuts because they'd rather see Keir Starmer lose a vote. The result? A system where even record-high taxation can't keep pace with rising demands. If politicians continue to dodge the argument for restraint, voters will soon realise that it's not just the welfare state that's unsustainable, it's their own household budgets too.
Yahoo
23-06-2025
- Business
- Yahoo
CIPFA welcomes Fair Funding Review 2.0
The Chartered Institute of Public Finance and Accountancy (CIPFA) has responded to the Ministry of Housing, Communities and Local Government's (MHCLG) consultation on the Fair Funding Review 2.0 and Council Tax Reform. It has expressed cautious optimism about the government's commitment to reforming local government finance. CIPFA director of Public Financial Management Iain Murray said: "We welcome the Government's recognition that local government finance needs reform. The commitment to address long-standing disparities in funding allocations and simplify the complex patchwork of grants is a positive step toward greater fairness and transparency.' Murray emphasised on the need for careful implementation and 'robust data' to support the transition. The institute has acknowledged the government's efforts but warns that structural challenges persist, particularly in the allocation and redistribution of funds. The proposed reforms, including a return to a multi-year settlement and the consolidation of funding pots, have been well-received by finance professionals for providing a clearer basis for planning and accountability. However, CIPFA has raised concerns that the government has yet to address fundamental pressures, such as the statutory override for SEND (special educational needs and disabilities) high-need deficits, which has been extended to 2028 without serving its intended purpose of facilitating reform. Murray added: "Without urgent solutions to both existing and future SEND deficits, those councils grappling with unsustainable high needs costs and rapidly growing cumulative deficits may, at best, be forced to make further reductions in essential services, and at worst, risk declaring themselves effectively bankrupt." Recently, CIPFA has issued a warning in response to the Public Accounts Committee (PAC) report on local government financial sustainability., which indicates a looming financial crisis for councils across the UK. "CIPFA welcomes Fair Funding Review 2.0" was originally created and published by The Accountant, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site.
Daily Mirror
20-06-2025
- Business
- Daily Mirror
Major change to council tax payments proposed - how it could affect your bill
The average band D household would pay approximately £38 less each month if they paid over 12 months, according to figures from the Government Millions of households will have their council tax spread out over 12 months by default under major changes being proposed today. Under current rules, council tax is normally split over ten monthly payments, from April to January each year. You can request your payments be split over 12 months instead, to give yourself smaller payments - but under a new consultation being launched today, the Government wants to make this the default. The average band D household would pay approximately £38 less each month if they paid over 12 months, according to figures from the the Ministry of Housing, Communities and Local Government. Households will still be able to pay their council tax bill over ten months if they want to. The consultation is also proposing slowing down the debt collection process for when someone has missed a council tax payment. If you miss just one council tax payment, you can receive a demand to pay the rest of your yearly bill upfront. Councils can then send in bailiffs if you continue to not pay, which results in added legal costs being added to your bill. The consultation is looking at capping additional costs and ensuring households are given information about what help they could be entitled to, if they are struggling to pay. It will also become easier to challenge your council tax band, if you believe you may be paying too much. It is estimated that around 400,000 people are on too high of a band. Finally, the Government is looking to change the outdated name of the "severe mental impairment" discount, which gives qualifying households up to 100% off their council tax bill, to "significant cognitive impairment" discount. The Government plans to run the consultation for 12 weeks, from June 20 to September 12. Any changes will be confirmed in autumn. Minister for Local Government and English Devolution, Jim McMahon OBE said: 'As part of our Plan for Change, we're putting working people first. 'We are listening and taking action to make council tax fairer, more transparent and easier to manage. Under our plans, local government will be there to support, and not to punish, people who fall behind.' Martin Lewis, founder of and Money and Mental Health Policy Institute, said: 'Many parts of the council tax system are broken. 'Having called for some of these fixes for nearly 20 years, I'm delighted the government has listened and rapidly launched this long-due consultation, including many of the administration areas I hear the most complaints on. 'Council tax rapid and aggressive debt collection methods currently hurt millions and disproportionately affect those with mental health problems. "Within three weeks of missing a monthly payment many councils say you must pay for the whole year… ridiculous, how can people who can't afford to pay for a month, suddenly pay for a year? "After a further three weeks councils can call bailiffs in and rack up charges on charges. No commercial lender is allowed to behave like this, meaning constituents are treated worse than consumers.'
Glasgow Times
17-06-2025
- Business
- Glasgow Times
Sir Sadiq Khan to pedestrianise Oxford Street ‘as quickly as possible'
Two-thirds (66%) of respondents to a consultation support the pedestrianisation plan, Sir Sadiq's office said. A separate YouGov survey conducted in September 2024 indicated 63% of Londoners are in favour of the project. Oxford Street is one of the world's busiest shopping areas, with around half a million visitors each day. Sir Sadiq Khan wants to ban vehicles from a 0.7-mile stretch between Oxford Circus and Marble Arch, with the potential for further changes towards Tottenham Court Road. Detailed proposals for traffic will be consulted on later this year. A previous attempt by Sir Sadiq to pedestrianise that part of Oxford Street was blocked by then-Conservative run Westminster City Council in 2018. His latest proposals depend on him obtaining permission from Deputy Prime Minister Angela Rayner in her role as Secretary of State for Housing, Communities and Local Government to establish a new Mayoral Development Corporation, which would provide planning powers. The aim is for this to be created by the start of next year. Sir Sadiq said: 'Oxford Street has suffered over many years, so urgent action is needed to give our nation's high street a new lease of life. 'It's clear that the vast majority of Londoners and major businesses back our exciting plans, so I'm pleased to confirm that we will now be moving ahead as quickly as possible. 'We want to rejuvenate Oxford Street; establish it as a global leader for shopping, leisure and outdoor events with a world-class, accessible, pedestrianised avenue. 'This will help to attract more international visitors and act as a magnet for new investment and job creation, driving growth and economic prosperity for decades to come.' Ms Rayner said: 'We want to see Oxford Street become the thriving place to be for tourists and Londoners alike, and that's why we welcome the Mayor of London's bold proposals to achieve that. 'We will support the mayor in delivering this ambitious vision, which will help to breathe new life into Oxford Street – driving investment, creating new jobs for local people and providing a boost to economic growth in the capital.' Adam Hug, leader of Labour-controlled Westminster City Council, said: 'While the mayor's formal decision today was not the City Council's preferred outcome, it is far from unexpected, and it is now important for Oxford Street's future to move forward together. 'Since the mayor's new approach was made public last autumn, Westminster has worked pragmatically and productively with the Greater London Authority (GLA) to ensure that the plan for Oxford Street more closely meets the needs of businesses, visitors, and residents. 'Since 2022, Oxford Street has roared back to life after the pandemic. Such is the level of retail confidence that existing brands have spent £118 million refitting their stores in the last 12 months alone, according to Savills. 'Westminster City Council will work constructively with the mayor's team to ensure the nation's high street is re-imagined in a way that works for visitors, shoppers, and our residents.'
Rhyl Journal
17-06-2025
- Business
- Rhyl Journal
Sir Sadiq Khan to pedestrianise Oxford Street ‘as quickly as possible'
Two-thirds (66%) of respondents to a consultation support the pedestrianisation plan, Sir Sadiq's office said. A separate YouGov survey conducted in September 2024 indicated 63% of Londoners are in favour of the project. Oxford Street is one of the world's busiest shopping areas, with around half a million visitors each day. Sir Sadiq Khan wants to ban vehicles from a 0.7-mile stretch between Oxford Circus and Marble Arch, with the potential for further changes towards Tottenham Court Road. Detailed proposals for traffic will be consulted on later this year. A previous attempt by Sir Sadiq to pedestrianise that part of Oxford Street was blocked by then-Conservative run Westminster City Council in 2018. His latest proposals depend on him obtaining permission from Deputy Prime Minister Angela Rayner in her role as Secretary of State for Housing, Communities and Local Government to establish a new Mayoral Development Corporation, which would provide planning powers. The aim is for this to be created by the start of next year. Sir Sadiq said: 'Oxford Street has suffered over many years, so urgent action is needed to give our nation's high street a new lease of life. 'It's clear that the vast majority of Londoners and major businesses back our exciting plans, so I'm pleased to confirm that we will now be moving ahead as quickly as possible. 'We want to rejuvenate Oxford Street; establish it as a global leader for shopping, leisure and outdoor events with a world-class, accessible, pedestrianised avenue. 'This will help to attract more international visitors and act as a magnet for new investment and job creation, driving growth and economic prosperity for decades to come.' Ms Rayner said: 'We want to see Oxford Street become the thriving place to be for tourists and Londoners alike, and that's why we welcome the Mayor of London's bold proposals to achieve that. 'We will support the mayor in delivering this ambitious vision, which will help to breathe new life into Oxford Street – driving investment, creating new jobs for local people and providing a boost to economic growth in the capital.' Adam Hug, leader of Labour-controlled Westminster City Council, said: 'While the mayor's formal decision today was not the City Council's preferred outcome, it is far from unexpected, and it is now important for Oxford Street's future to move forward together. 'Since the mayor's new approach was made public last autumn, Westminster has worked pragmatically and productively with the Greater London Authority (GLA) to ensure that the plan for Oxford Street more closely meets the needs of businesses, visitors, and residents. 'Since 2022, Oxford Street has roared back to life after the pandemic. Such is the level of retail confidence that existing brands have spent £118 million refitting their stores in the last 12 months alone, according to Savills. 'Westminster City Council will work constructively with the mayor's team to ensure the nation's high street is re-imagined in a way that works for visitors, shoppers, and our residents.'
