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The
Vote Motive
Tax up, voting down - what's going on? Whatever
happened to that old mantra, 'no taxation without representation'?
Now, you know what a cheery chap I am - no challenge
is too great. On this occasion I need to warn you that April
will be a grim month. Take your eyes off Iraq, Palestine, asylum
seekers, Lord Irvine's salary, traffic and parking for one moment
- and consider this. In April your National Insurance tax will
be going up substantially, so will your Council Tax and the
value of your future pension will probably be going down again.
What's up?
In May, Salisbury District Council is up for
election. Do we hear you say, 'Ah! So we'll show them what we
think of their swingeing tax increase'? Given the level of voter
apathy, it is much more likely we'll shrug our shoulders, pay
up and carry on whingeing about the traffic.
I've had two letters on the subject. One came
from a pensioner. He pointed out that between 1995-1998 his
District Council tax rose by 253%, his County tax was up 23%,
police precept up 29% and the Retail Price Index up 9%. But
between 1999-2002 the District tax was up just 12%, County tax
up a whopping 28%, and police up by staggering 33% - all against
an RPI rise of just 6%. Gloomily, he pointed out that at this
rate of increase, if he were to live another 20 years or so,
his council tax would rise to £18,000 a year - and swallow
up his entire state pension.
The other came from an anguished young married
woman. She and her husband both work for the Government at different
local establishments. They are really struggling with their
mortgage and they each have to keep a car on the road to get
to work. Their pay will rise in line with inflation - but how
can they find the money to fork out over 15% more for Council
Tax? It's just not there.
I do feel sorry for District Councillors trying
to sell their wares to the electors. In Salisbury, they've kept
the tax increase down to the lowest rise in Wiltshire. But when
the Council Tax demand thuds onto the mat just before the elections
in May, it won't look like that, because the District collects
the County Council's Tax, the Police Authority tax, the Fire
Service levy (and what will that be this time?) and the Parish
Council tax as well.
We're lucky compared to our neighbours in Hampshire
who face a local tax hike of some 20-30%. So, what's going on?
In short, a council has no option on the bulk
of its spending because the Government imposes 'statutory responsibilities'.
John Prescott then works out what he thinks they will cost and
tells Gordon Brown to write out some cheques. That's the theory.
But then Gordon then decides local people should bear more of
the increased burden, especially if we live in the South - so
we only get part of the real cost from central taxation. For
example, this year we have a new formula that says Wiltshire
should get an extra 16% - but Prescott has capped it at 8.9%!
So the County gets £5 million less than it should and
passes the bill on to us.
And where's Tony while this daylight robbery/Robin
Hood stuff is going on? He's busy with George. Seriously though,
can this go on much longer? We are forgetting the lessons of
the 1980's - that a low-tax economy created more wealth and
higher tax revenues with less pain.
In the face of all this, you might have expected
turnout in local government elections to soar. You might also
expect infuriated taxpayers to be queuing up to stand for election
with their favoured political party. Don't hold your breath!
Let it not be said I didn't try. Nominations
for Council election candidates must be in soon. Here's your
big opportunity to make a difference!
Robert Key MP
9 February 2003
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