Taxing Times

When the Bishop of Salisbury built Ayleswade Bridge in 1244, he not only sealed the economic fate of Wilton and Old Sarum and ensured the prosperity of New Sarum, he also got himself a nice little earner. In fact it was a double-whammy, because not only could he charge bridge tolls, he then collected market fees as well! Since then, The Treasury has had 800 years experience of taxing us.

‘The Rates’ were a property tax. So a house was taxed as a unit whether one pensioner lived in it or four income earners. By the1980’s this was felt to be unfair, so the Community Charge was introduced. It was simple. Every adult paid. It was not linked to property. This came as a shock to some people. You may remember the Poll Tax Riots! But what finally killed the Poll Tax was that instead of coming in at about £140 per person, per year, it ended up nearer £400. The Treasury had shifted the burden of tax from central taxation to local taxation.

So we introduced the Council Tax a decade ago. This is based half on property and half on occupancy. It is a fair tax and has stood the test of time. But The Treasury is up to its old tricks. History repeats itself. The burden has shifted again to local taxpayers and it won’t do.

Local income tax is as unfair as the Poll Tax. Families and shared houses with more than one earner would see their local tax soar. Pensioners would have savings taxed locally, too. The average Council Tax in Salisbury is about £1054. To maintain that level of spending would need a local income tax of 6%. Of course, the only Party that wants local income tax (the Lib Dems) also wants a Regional Government levying a 3% Regional Income Tax. Add this up, and the local income taxes for a two-earner household would leap to £3,640!

Even under Conservative control, our local authorities have been forced to raise local tax to levels that many people find very hard to pay. Central Government has forced them to provide new services without new money from them. It has to come from you and me locally. There is not much discretion – our councils have a legal duty to spend as directed. The only options could be very radical indeed – but they must surely be explored.

At Westminster we have told the Government of the trouble they are storing up and the hardship they will cause. I have reminded the Leaders of Wiltshire County Council and Salisbury District Council that we are looking to them for a lead. Our Police Authority would like another 20% rise in their precept this year, as last year. They say police services will be cut if we don’t fork out at least 12% more. The Fire Authority would like a 30% rise.

I will continue the fight in Parliament. You don’t have to be a Wat Tyler – but answers on a postcard, please!

Robert Key MP, 18th. October 2003