HOME OWNERS ARE CASH COWS
ONCE again it’s that time of year when council tax will rise to pay for ever decreasing services.
A few weeks ago I sent an email to Jake Berry and Alyson Barnes to ask if the rumours that the Government had sent a letter to all Councils demanding that Council Tax must rise by 55 were true.
I have not received any confirmation but taking into account last week’s Rossendale Free Press report on page 14 (‘Tax bills are set for £60 rise’), it look like significant increases are in the pipeline.
In my email to Mr Berry and Mrs Barnes I calculated that the average monthly costs of owning a home were typically as follows - mortgage or rent £500 per month, energy £80, water £35, TV tax £13, insurance £12, Council Tax £176.
A total without food or car costs of around £816 per month, costs after tax paid on income.
Although annual rises of 5 per cent may not seem significant, the impact of year, upon year increases paints a different picture of rising fixed costs that put home ownership out of reach for many people.
We must also look at the breakdown of the Council Tax bill. For example, the Police in particular are asking for more funding.
According to public figures (Statista) between 2010 and 2020 Police numbers were reduced by 14,000, but no reduction in costs were offered to council tax payers.
Now in 2021 the argument is that more Police are needed and costs must rise again.
In conclusion it appears that all the arguments between Government, Lancashire County Council and Rossendale don’t really amount to much, one just blames the other.
The central objective however is to extract as much money from the public as possible without any major backlash.
People and home owners are indeed the new cash cows and have from a Government point of view replaced manufacturing industry as a source of income.
The problem with this strategy is that in a declining and shrinking economy, it cannot last.
Perhaps next year the Government might reintroduce the Window tax of 1696.
R C Barker
Bacup