Memorandum by Mrs Barbara Vaughan (LGR
03)
There has to be a change in the way local government
is financed. The present Council Tax is a regressive tax and especially
iniquitous for the widow pensioner living alone who, at best,
is living on Half her late husband's occupational pension.
Pensions have been rising at the rate of about
1.7% a year and this pathetic rate on a small sum does not go
anywhere near covering the rises in the tax local councils have
been imposing. Moreover, anyone living alone has to pay 75% of
the tax imposed by the Band their property falls into.
Margaret Thatcher's Poll Tax was designed to
get rid of the situation where a single pensioner could be living
next door to a house full of wage earners and yet had to pay the
same amount to the Council as his/her neighbour. The Council Tax
which replaced the Poll Tax has not addressed this preposterous
iniquity and remains grossly unjust. It would be far more equitable
if everyone had to pay a local income tax of a given percentage
of their gross income. This would be fair to all.
Can you really condone the situation where widow
pensioners who live alone on one small income should have to pay
25% more Council Tax per head than people who live in a house
with two (or possibly more) incomes coming in? The Council Tax
is based on two adults living in a property. If there is a third,
fourth, etc employed adult living in that house, they pay no Council
Tax at all even though they are using the Council services and
could possibly well afford to pay! Yet widow pensioners living
alone, very often on a pittance, have been ground down to poverty
level by this tax and are being threatened with prison because
they have been made to subsidise their possibly better off neighbours.
They are obliged to pay 75% of their Council Tax band fee rather
than 50% which, to most reasonable people, would seem to be common
sense. It is nothing short of scandalous and should be rectified
forthwith.
Councils should be obliged to make sure their
spending does not exceed the rate of inflation: and pensions should
rise with the rate of inflation in a proper manner, not 1.7% when
the average annual figure is more like 2.6%. Any shortfall should
be fully paid for by government funds. A close watch should be
kept on wasteful spending, over-generous salaries and perks the
officials find for themselves. Monitoring should take. place to
see that funds go to the areas which provide services for the
community.
It is iniquitous that anyone in a so called
civilised society should be reduced to a state of poverty by the
imposition of regressive taxation so that they are forced to apply
for benefits. Benefits may appear to politicians and public servants
be the answer when widow pensioners (and others) cannot pay any
longer but most people would prefer to keep their self respect
and not have to receive benefits. Most people prefer to be independent
and pay their way in the normal manner, which most should be able
to do but for a system of regressive taxation. I would hazard
a guess that you, yourself, would squeal at a Council Tax rate
of 10% of your gross income but that is the rate many widow pensioners
living alone have to face.
I do hope you will address the issues I have
raised and do your very best to see that a fairer Council Tax
for everyone is introduced.
Barbara Vaughan
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