Government funding squeeze to strike East Riding Council Tax payers

10.00.00pm BST (GMT +0100) Fri 12th Oct 2007

LIBERAL Democrats in Haltemprice & Howden have warned that the council tax could rocket over the next three years because of the government's decision to squeeze the cash given to councils. The effects will fall hardest on the elderly and those on low or fixed incomes as this unfair tax is not based on the ability to pay.

For every pound spent by councils, on average, 75 p of it comes from central government as part of a cash grant to help pay for local services. But the government's spending plans for the next three years (the Comprehensive Spending Review) will slam on the brakes and massively restrict the money Whitehall based ministers give to councils.

Haltemprice & Howden Lib Dem Campaigner David Nolan said, "The Labour Government's spending plans are based on council tax rising at double the rate of inflation over the next three years. The Tory-run local council have published their 5 year plans for above-inflation increases of 4% pa. The double whammy of the Conservative-run council's plans for tax increases, now combined with the Government squeeze on funding means that residents will see big council tax increases without any improvement in services.

"Labour have no plans to reform council tax, the most unfair tax in the country. The Conservatives will also keep the council tax because they brought it in. But Labour are making a bad situation worse by forcing up council tax by more than inflation.

This is bad news in particular for the elderly residents of Haltemprice & Howden who have fixed incomes or have saved all their lives and cannot claim council tax benefit.

Council tax is a rotten system and needs to be replaced with a fairer way based on the ability to pay, not misused to bail out Labour's Whitehall cash black hole."