It’s time for an honest conversation about tax in the UK. Successive Governments have pledged not to increase the tax burden on the public in their manifestos and then once in power they put in place policies that do the opposite.
Just look at the shift that has taken place in tax revenues since austerity started. In 2010, local government’s core spending power of £50B was around 80% funded from local tax yield with a further 20% subsidy from direct taxation. Fast forward to 2019 and the £46B or so that local government will receive in core spending power in the coming year, is outstripped by the £52B that will be raised in local taxation. Local taxation is now clearly subsidising national spending.
Local people and local businesses are now paying significantly more in council tax and business rates for the services they receive at a time when many of the neighbourhood services, that determine the look and the feel of the place, are being decimated. Add to this the fact that fees and charges have also either been introduced or increased, in order to try and hold local services together and we really are testing people’s patience.