Council tax on the islands is a hot issue. Last year saw one of the highest council tax rises ever. There was increase of 13% on average across the country which caused widespread protests and a refusal to from some pensioners in the south-west. In Devon the tax rose by 18%; in Cornwall it sent up by 9% and Scilly saw one of the greatest rises in the country. But who actually knows anything about it? Most people know they don’t want it to go up but why do we need it in the first place? Scilly News gives you the low down on the troubled waters of council tax. Firstly it is a tax on property and is divided into eight property bands that are labelled from A through to H. The bands refer to the value of the property you live in. This valuation is based on property prices in 1991. There are a range of exemptions for example disabled people are entitled to a reduction as are single people. Also an issue which often causes controversy on the islands is that second home owners also have a reduction. People who are on low incomes can get help through the council. But why is it inflicted on us in the first place? The trouble is that you can’t really blame one person or group. Locals blame councillors, councillors blame the government, independent organisations like the Audit Commission blame councillors and the government. Local governments are funded in various ways. They are given Revenue Support Grants from central government, the Uniform Business Rate, the Council Tax and other specific grants from London and Europe. Every year central government says that it has given local governments enough money which allows for inflation. But the government dictates to council where some of the budget must go. For example they may give ‘Imaginary-place council? ?10 million to spend but insist they allocate ?9.5 million of that on education. Every year councils claim they have been hard done by and will have to cut services to keep within their budget. Basically when councils don’t have enough money they have one of two choices to make: raise council tax or cut services. Either choice is likely to be unpopular. Now there are rumours that council taxes will be scrapped in its present form but will their be an alternative that everybody is satisfied with? Please let Scilly News know what you think about council tax and also what you think should replace it.
