Council Tax Benefit cuts spell further hardship for the low-waged, poor and vulnerable

Are we about to see a repeat of this?

Just when you think this venal government couldn’t get any crueller, I read today that the Con Dems are to scrap Council Tax Benefit (CTB) and leave it to local councils to make their own arrangements. This is what they describe as “localism”, which in an earlier blog, I described as a “marketing gimmick to sell council cuts”. It would appear that my initial fears have been proven correct. The definition of the word, “empowerment” in the Tory lexicon, is to grant local authorities the power to screw the poor.

This article from today’s Guardian tells us that Lord Snooty faces a rebellion in his own constituency over this issue.

David Cameron is facing a revolt in his own Oxfordshire “backyard” as local Tories join a national outcry over council tax reforms that they say will cost people on low earnings more than £420 a year from next April.

Tory-run West Oxfordshire district council, which covers the prime minister’s Witney constituency, has decided to go it alone and keep the existing system throughout next year, effectively snubbing Cameron’s government.

Council Tax, like the hated Poll tax before it, is not based on an individual’s ability to pay but on local property prices, which are themselves, inaccurate. In some areas, Council Tax is high and in other areas, it is lower. Often, in those areas where Council Tax is low, services have been slashed. Take Hammersmith and Fulham, for example, a council controlled for the last 6 years by the Tories, who have cut local services and forced out community groups out of Palingswick House to make way for Toby Young’s free school. This is evidence enough of how H&F council views those who are not materially wealthy. Here the Council Tax is apparently low but only because of the cuts and the stealth taxes imposed on the local population. These stealth taxes include, ramping up parking charges and charging to cart away bulky items of rubbish, a service that was once offered for free. The borough discount leisure card was scrapped almost as soon as they took power.

The last leader of the council, Stephen ‘Dear Leader’ Greenhalgh made it clear that he wanted more rich people to move into the borough. When in power, he approved the sale of council homes and he has leant on Housing Associations to sell any properties that become void. Property prices have increased dramatically  over the last 5 to 6 years with some properties in the borough selling for as much as £1m. It is unlikely that a council, like Hammersmith and Fulham, which is wholly committed to making life easier for their rich chums, would have its own version of CTB because it despises anyone who is poor or on a low income. Instead, those on low incomes will be forced to move out of the borough.

Polly Toynbee tells us that,

300 councils must each devise their own criteria. Each becomes a mini DWP, establishing its own means test without having access to people’s earnings. Each must divide its benefit pot between varying numbers of claimants each year. Miserly authorities can keep much of it for other purposes. Each decides who is “vulnerable” or whether to include disability living allowance, child benefit or personal savings in declaring who is eligible for how much.

Hammersmith and Fulham is one of those “miserly authorities” and I can expect someone like Foghorn Phibbs or Peter Graham to trot out social Darwinian clichés in defence of the council’s niggardly attitude to those who are on low or no incomes.

I found this interesting site that was set up by the students on the MA Investigative Journalism course at City University.

Hammersmith and Fulham is the fourth most expensive borough in the country, both to rent and to buy property. New developments will not include any more council housing, but will instead provide a large number of properties for rent at the 80 per cent level. That offers little opportunity for current residents on lower incomes to afford to live in the borough independently. Coupled with the Government’s benefit cap, large numbers of people may be forced out of the area.

The scrapping of CTB is the latest in a long line of poorly-conceived ideas to have come from this government, which in spite of its protestations, remains firmly committed to supporting and extending the powers of the rich at the expense of those who can least afford it.

The Worksop Guardian reports that 5,000 families could be at risk in Bassetlaw.

The Salford Star tells us that the mayor could be forced to implement cuts that may affect 20,000 people.

Before the Liberal Democrats accepted the poison chalice of governmental power, they told us that they wanted to scrap Council Tax and replace it with a fairer system of local income taxation. This idea was quietly dropped when Nick Clegg walked through the door of 10 Downing Street.

This government’s justification for CTB cuts is best illustrated by the intellectually-challenged Housing Minister, Grant Shapps, who claims that the cuts will “make work pay and promote local enterprise”. With wages stagnant,  prices increasing week on week, banks reluctant to lend businesses money and living standards falling, how does he see this happening?

This latest wheeze from the government will force even more people into poverty and debt and may even force people out onto the streets. Indeed, this could be another Poll Tax moment for the Tories with people taking to the streets to protest and much else besides.

5 Comments

Filed under Conservative Party, Cuts, Government & politics, Local government

5 responses to “Council Tax Benefit cuts spell further hardship for the low-waged, poor and vulnerable

  1. Reblogged this on Representing the Mambo and commented:
    Excellent piece on an issue that could become very big very soon. I’ve blogged previously on how in Birmingham the national government is passing responsibility for one of their nastiest cuts onto the local council, a situation that is naturally being replicated up and down the country. Is it too much to hope that Labour councils will actually refuse to do it and demand that the Conservatives desist from their ideological agenda? (and don’t worry readers I know the answer already….)

  2. Oh dear. (so often the response to any ConDem decision) It is highly dangerous to leave CTB in the hands of councils of the rabid right like H&F, Westminster, or Thurrock. This is a recipe for disaster. And particularly at a time that councils covering deprived areas are being forced to implement the deepest cuts, such a benefit is likely to be severely cut back.
    As it is, I’d trust few councils to administer themselves out of a paper bag. How many errors are they going to make with Council Tax bills?

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