During the General Election campaign, debate over what has been achieved by the Conservatives over the last 14 years naturally crops up. A paradox is that the distinctively Conservative accomplishments were mostly seen during the 2010 to 2015 Government – despite the constraints of coalition with the Lib Dems.
We had the free schools and academies programme and the other education reforms which boosted standards in our schools. We had the introduction of Universal Credit and other welfare reforms which (until lockdown) proved effective at rewarding work. George Osborne’s Chancellorship was a mixed bag but overall was positive.
In 2010/11 state spending absorbed 45.7 per cent of GDP, by 2015/16 it was down to 41.1 per cent and falling. Most of that impact was on reduced borrowing. But the tax burden fell a little – from 33.2 per cent of GDP in 2010/11 to 32.8 per cent in 2015/16. Big State Conservatism only started to kick in with Theresa May.
Local government was one area of important Conservative achievement during those first years of power. Bureaucratic impositions from Whitehall were eased. But there was greater rigour and accountability with transparency over spending, property assets and pay. Spending was cut but, in general, councils rose to the challenge with greater efficiency and innovation. Satisfaction levels in the standards of services increased.
Crucially, there was protection for Council Taxpayers. If Council Tax was proposed to be increased above a certain level then consent would be required in a referendum. Until 2016, that level was effectively nil. (A small increase was allowed but if that had been imposed there would have been a loss of government grant.)
Councils might claim what marvellous value the Council Tax was but none of them even attempted to win approval for an increase. (A Labour Police and Crime Commissioner in Bedfordshire gave it a try and got thrashed.)
In real terms, Council Tax fell by 11 per cent between 2010 and 2015. The Troubled Families programme was a good example of streamlining state intervention to be both more effective and less expensive. The robust leadership of Sir Eric Pickles stood firm against the vested interests.
We still have some protection for Council Taxpayers though it is weaker. This year the maximum increase allowed without a referendum is 4.99 per cent – with a few special exceptions. That is above inflation. So Council Tax is rising not just in cash terms but in real terms. Yet there is still a veto to thwart the most outrageous profligacy.
Compare what has happened in Wales, with no referendum protection. In 2010 the Council Tax was much lower in Wales than England. A Band D property was £1,216.54p. In England, it was £1,439. But that gap has been closing due to the bigger rises in Wales. This year it’s £2,024.31 in Wales, £2,171 in England.
The Council Tax has increased by 80 per cent in Wales since 2010, compared to 50 per cent in England; if Council Tax had increased in England by the same rate as in Wales, it would be over £400 a year more for the average household.
So would a UK Labour Government follow the example of Wales? I fear so. Labour’s Manifesto says nothing about Council Tax. Ominous. Labour councils will be lobbying for the spending constraints to be lifted. Labour MPs have consistently opposed any requirement for a Council Tax referendum.
I am not suggesting that Council Tax increases of 50 per cent in England since 2010 are a matter of rejoicing. But it could have been much worse. When muncipal budgets are set next year will there be any limit at all to how much Council Tax can be pushed up?
The post Would a Labour government end the referendum veto on excessive council tax rises in England? appeared first on Conservative Home.
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Author: Harry Phibbs
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