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28/09/2006
Millions struggling to pay council tax
More than two million households are struggling to pay council tax bills, according to a report by the Joseph Rowntree Foundation.
The report found that those on low incomes were particularly badly affected, because they had to pay a larger percentage of their take-home pay than those on higher wages.
The report found that nearly three million summonses for non-payment of council tax were issued each year, with low income cited as the main reason for failing to pay the bills.
Dr Michael Orton, author of the report, said: "Despite having a job, the struggle to pay council tax is part of the day-to-day difficulty of making ends meet for many people. Low income creates vulnerability to missing payments and repaying arrears."
The report said that council tax is regressive, meaning that it takes a larger share of income from those on lower and middle earnings than from those on higher incomes.
Council tax accounts for 4.9% of gross income for the bottom fifth of households, compared to 3.7% for households in the second to bottom fifth and just 1.7% for those in the top fifth, the report found.
It also suggested that the system by which people could claim council tax benefits was complex.
The report concluded that consideration should be given to making council tax fairer by revising the proportion of the tax levied on each valuation band.
Dr Orton said: "Low income households in high valuation properties are exceptional. Consideration needs to be given to the position of the far larger numbers of low and middle income households who currently pay proportionately more tax."
The Conservatives said that council tax was the "ultimate stealth tax". Shadow Local Government Secretary Caroline Spelman said: "A third of the basic state pension increase since 1997 is now ruthlessly snatched back in local taxes.
"Labour's increased use of means tested benefits and complex application forms has resulted in a reduced take-up of council tax benefit, so more people on lower incomes are paying higher council taxes."
(KMcA/EF)
The report found that those on low incomes were particularly badly affected, because they had to pay a larger percentage of their take-home pay than those on higher wages.
The report found that nearly three million summonses for non-payment of council tax were issued each year, with low income cited as the main reason for failing to pay the bills.
Dr Michael Orton, author of the report, said: "Despite having a job, the struggle to pay council tax is part of the day-to-day difficulty of making ends meet for many people. Low income creates vulnerability to missing payments and repaying arrears."
The report said that council tax is regressive, meaning that it takes a larger share of income from those on lower and middle earnings than from those on higher incomes.
Council tax accounts for 4.9% of gross income for the bottom fifth of households, compared to 3.7% for households in the second to bottom fifth and just 1.7% for those in the top fifth, the report found.
It also suggested that the system by which people could claim council tax benefits was complex.
The report concluded that consideration should be given to making council tax fairer by revising the proportion of the tax levied on each valuation band.
Dr Orton said: "Low income households in high valuation properties are exceptional. Consideration needs to be given to the position of the far larger numbers of low and middle income households who currently pay proportionately more tax."
The Conservatives said that council tax was the "ultimate stealth tax". Shadow Local Government Secretary Caroline Spelman said: "A third of the basic state pension increase since 1997 is now ruthlessly snatched back in local taxes.
"Labour's increased use of means tested benefits and complex application forms has resulted in a reduced take-up of council tax benefit, so more people on lower incomes are paying higher council taxes."
(KMcA/EF)
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18 September 2003
Charity groups demand reform of council tax charges
Help the Aged and The Royal British Legion have joined forces today to demand a reform of council tax and Council Tax Benefit. The two charities say that "annual inflation-busting" increases in council tax "unfairly discriminate" against older people, whose incomes tend to be fixed or linked to inflation.
Charity groups demand reform of council tax charges
Help the Aged and The Royal British Legion have joined forces today to demand a reform of council tax and Council Tax Benefit. The two charities say that "annual inflation-busting" increases in council tax "unfairly discriminate" against older people, whose incomes tend to be fixed or linked to inflation.
31 March 2005
Lib Dems pledge to scrap 'unfair' council tax
The Liberal Democrats have vowed to scrap the "unfair" council tax, on the 15th anniversary of the poll tax riots. The party said that the council tax should be replaced with a local income tax, based on the ability to pay.
Lib Dems pledge to scrap 'unfair' council tax
The Liberal Democrats have vowed to scrap the "unfair" council tax, on the 15th anniversary of the poll tax riots. The party said that the council tax should be replaced with a local income tax, based on the ability to pay.
20 April 2005
Tories & Lib Dems launch council tax plans
The Conservatives and the Liberal Democrats have both unveiled plans to tackle council tax. The Conservatives have pledged to cancel Labour’s planned revaluation of homes in England for the council tax.
Tories & Lib Dems launch council tax plans
The Conservatives and the Liberal Democrats have both unveiled plans to tackle council tax. The Conservatives have pledged to cancel Labour’s planned revaluation of homes in England for the council tax.
21 March 2007
Council tax report recommends changes
People living in the most expensive properties in England should pay more council tax, a report has recommended.
Council tax report recommends changes
People living in the most expensive properties in England should pay more council tax, a report has recommended.
30 November 2010
Corporation Tax Reform To Create 'Competition'
The Government has published details of its Corporate Tax Reform programme consisting of a series of essential reforms designed to improve the UK's tax competitiveness. Measures include the introduction of new Controlled Foreign Company (CFC) rules and a commitment to introduce a Patent Box.
Corporation Tax Reform To Create 'Competition'
The Government has published details of its Corporate Tax Reform programme consisting of a series of essential reforms designed to improve the UK's tax competitiveness. Measures include the introduction of new Controlled Foreign Company (CFC) rules and a commitment to introduce a Patent Box.
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