Council Tax, How is the money raised?

Discussion in 'Diamond Lil's' started by slim, Jul 13, 2007.

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  1. Anyone who owns property in the UK must pay council tax. Now at present the amount paid depends purely on the band in which your property lies, except in the case where a single person occupies the property when this is reduced by 25% or if the property is occupied purely by student when it is zero rated.
    So the council knows how many houses are to pay and work out the appropriate rate.
    So my question is, and I have been unable to find the answer on the net:

    There is almost certain to be a shortfall for the following reasons:
    1. Many houses contain students so do not contribute
    2. Many houses have a single occupant so pay a reduces rate
    3. Many houses are occupied by those on social security and low incomes so get a reduction.

    How is this lost revenue recovered?
    1 Is it from central governments coffers?
    2 Do they increase the rate so that those who do pay actually pay for those who do not?

    I would love to know the answer and am sure an RR ember will be able to enlighten me.
  2. In my opinion Slim, the lost revenue is recovered by a reduction in services, for example, increasing the time between refuse collections, or waiting until street lighting is in a very poor state before repairing etc :)
  3. Council Tax---------

    The 'lost' income isn't really 'lost ' in terms of cash flow

    The Government gives a set rate to the local authorities and the LA then set a 'poundage ' based on property values at last valuation to increase the spend to what the LA think that they will need to meet shortfalls and requirements for services .
    The non payers as mentioned ----students/ those on benefits/ etc are met by Social services budgets so the money is made up that way.

    I live in Scotland and they are about to change our Local Authority 'rate setting' procedure to a form of poll tax [oops another name----local tax :thanks: ] Hopefully it will work out .
    I'm one of the single occupant dwellers in a huge house paying mega bucks--------and thats with the 25% reduction.

    :nemo: :nemo:
  4. The short fall is made up by us silly buggers south of the border by the £1,600 a year we donate to the jocks.
  5. So you buy your council home for naff all years ago then with this monopoly property rise your house is now worth lots of cash.

    So now you must pay the rateable value of your home even though you couldn't give a shite how much it is worth you just want to live there forever and be left in peace. Thats why you bought it!!

    And now you are on crap pension and the council weasels wish to know how much you have in savings so they can decide if you are a needy cause and reduce by five quid.

    So they can get lotsa money to waste on stupid projects like tree lining the streets so in a few years time they can send peoples along to dig up the trees because Tom Mary and kids fell over the roots pissed up one night and are now claiming for grazed knees and will never work again. And have to drink more because of the trauma they went through that night.

    In Ireland there are no council rates or water rates! It is all on the goods you buy and mighty expensive they are!

    Even to go to the recycle place costs twenty five euro a car. Even for grass cuttings etc. An encouragement to recycle they say.

    Mind they do take tins light cardboard and paper in the same bin for free. You pay for your rubbish bin by buying a tag from the local shop. So it pays to recycle yourself.

    Or you could go to the mountain roads and dump your crap like a few do! A nice stroll along the river and old suite dumped from the bridge. Same as in the UK bin bags dumped in country lanes it took a car to get it there go a bit further and take it to the skips you low life shite!!!

    Now what was the question??

    When was the last time you spotted a grid gully sucker that cleans out the sediment in the bottom of the grid. Used to be a regular thing when we where kids to watch it in action. Now we have the heavy rains and the grids are blocked so over it goes to the next that is probably blocked so eventually it arrives at your doorstep!
  6. chieftiff

    chieftiff War Hero Moderator

    Quality cynical rant and the last bit intrigued me, you're right I haven't seen one in years, not since I was a kid. We used to follow them up the road because they always found coins in the drains, when I leave the mob I will have to go out in search of them again.
  7. We still have 'gully suckers ' in Scotland.

    The rates/council tax whatever you like to call it has always been unfair
    to home owners . Maggies poll tax was a good idea and fair aswell. But because the non home owners complained it all fell by the wayside --
    cos' the politicians needed the votes!!

    In my opinion local taxation is the fairest way ----------you want local services then pay for them .It may also bring the cost down once everyone realises how much the councils want each year and the voters start complaining!!

    :nemo: :nemo:
  8. Slim,

    You are assuming that the Local Authorities work out their budget, then set the rate.

    A cynical person (me) would suggest that they raise whatever they think they can get away with, then work out how they're going to spend it.

    If there is a surplus, then it'll go on wage rises for council members, their wives (aka secretaries), their mates etc. If they find out that the've spent all the cash and there is nothing left for services (roads, policing, rubbish collection etc) then they lower the standard of those services.

    If there isn't enough for their lavish lifestyle, then they just increase the amount of backhanders they receive from building contractors etc.

    Like I said, I'm a bit cynical about Local Authorities. :x

  9. And with just cause....
  10. Greenie

    The Poll Tax failed because it was un-enforceable. The tax was on a person and many avoided payment. The Courts then had to enforce payment from a person very long, difficult and expensive. Rates/Council tax works cos it is enforced against the property (however the wording is dressed up) which cannot move.

    Here in Spain parking fines speed camera fines etc are enforced against the car. If you do not pay when you go to tax or insurer your vehicle you find they have been added to the car tax bill, No pay, no tax, no go on the road. If you purchase a car with outstanding fines you will have to pay them. If you buy a house with an outstanding mortgage that your Solicitor has failed to locate you will have to pay it. Not fair but it works.

  11. Going to sound a right smartarse now, but here in Cyprus we have :-
    Refuse collection = twice a week
    Festive decorations in local area (lights, trees etc depending on season)
    Very little litter in streets
    Landscaped park areas and kiddies playgrounds
    Council Tax (2 bed semi with pool and off street parking) = £83 per year!

    And finally : can fill our car up and get change from £20. Car tax £34/year
  12. Maggies poll tax was the fairest tax for local authorities ever

    If you are single you say pay £100 per year for your services
    and for each adult (over 16) the same

    Why should the widower with one bag of refuse, seven showers a week and not much chance of using the police or fire brigade,maybe an odd occasional ambulance pay the same (sorry25% reduced) as
    The family of two asoles and five kids over sixteen
    Seven bags of refuse, 49 showers a week, the police around twice a week and the ambulance monthy (whilst the rest of the family steal the difibulators and bandage packs)

    Local tax should be based on the users not the building
  13. Am in Fife aswell JMcH --I voted Scot Nat----just to piss off the Labour wankers who have had it too long-----the Westminster puppets .
    I think they have now frozen any further council tax rises in view of the new tax being imposed.

    :nemo: :nemo:
  14. The Council Tax actually contributes only a fraction of the cost of local services provided. Most of the money comes from central government paid for by taxpayers.

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