As the Government loses control of public finances and the Chancellor admits that tax rises are coming, we are reminded of Keir Starmer launching the Labour Party’s local election campaign in Swindon two years ago with the shameless announcement that Labour would freeze council tax if in Government!
Yet, in last month’s Spending Review, the Government set out plans for massive borrowing with the inevitability of more tax rises – including our Council Tax.
Labour do what they always do, they default to high spending which means more borrowing and higher taxes, leaving public finances vulnerable yet again.
They create a tax spiral: they increase taxes, which kills growth, and now they plan to raise taxes even further despite Reeves saying last year: "I’m really clear, I'm not coming back with more borrowing or more taxes."
The Institute of Fiscal Studies have warned that the chancellor's spending review has a "sting in the tail" - which is that it relies on all English councils raising Council Tax by five percent every year.
It is a fact that bills look set to rise at their fastest rate over any Parliament since 2001-05, when Labour where also in power.
The Local Government Association have also expressed their concerns, saying “...a lack of significant extra government money needed to meet immediate pressures (on social care) is worrying.”
In Swindon, we know that every penny of this year's increase in core Council Tax was spent on the Governments national Employer National Insurance increase and new Council loans.
The Council is spending £14 million more money than it has and is on the verge of bankruptcy. The Spending review does not help the situation. ”
We know that higher council tax rises can disproportionately affect low-income households and contribute to overall inflation. The consequences of having less disposable income means that households in Swindon have a lower standard of living, impacting their ability to afford food, energy and housing costs.
A five percent increase in Council Tax next year will add £400 to a Band D House. The Government is relying on us to rightly support struggling families but the impact also means less money for essential services such as street cleaning (including graffiti and littering), gully clearing, addressing fly-tipping and highways maintenance, all issues which have already suffered under this administration.
Coming on top of a doubling in inflation, higher prices for everything from food to fuel, a sharp rise in unemployment, stalling economic growth, soaring debt interest and pensioners sacrificed, things don’t look too rosy for families across Swindon for the foreseeable future.
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