Council Tax: Government’s Proposed Increase

Edward Leigh Excerpts

Monday 25th January 2021 Commons Chamber

[The Secretary of State for Housing, Communities and Local Government (Robert Jenrick)]

I beg to move an amendment, to leave out from “House” to end and add:

“notes that council tax doubled under the last Labour Government, but has fallen in real terms in England since 2010; asserts that council budgets are a local decision for elected councillors and mayors, but local taxpayers are now protected from excessive council tax increases, a policy opposed by the LGA Labour Group; disagrees with the Labour Party’s ‘Land for the Many’ proposals to hit hard-working families and pensioners with a new homes tax; notes that the biggest increases in council tax have been under the Labour Government in Wales thanks to their council tax revaluation and lack of referendum protections; welcomes the fact that Conservative councils set the lowest average Band D rates; and further welcomes the additional government funding of over £30 billion provided by the Government to support councils during the Covid-19 pandemic.”.

The Labour party position on this most important question is so inconsistent and contradictory that it is difficult to know where to start, but let me give a few basic facts to the House. The Leader of the Opposition thinks councils should not be given limited flexibility to decide themselves, locally, to raise their council tax rate. Yet, as we have already heard from my hon. Friend the Member for Kensington (Felicity Buchan), the Labour Mayor of London has decided to hike his share of council tax by 10%, while still finding the room to up his personal PR budget to £13 million, run by a £130,000-a-year spin doctor based in California. I am all in favour of working from home, but that really is quite a leap.

[Sir Edward Leigh (Gainsborough) (Con)]

May we just leave London for a moment, because there is a real dissonance between what people pay in a big city such as London and what people pay and get back in a rural area such as West Lindsey, with which my right hon. Friend is very familiar? We pay slightly more and we get a lot less— sometimes not even a street lamp; maybe a rubbish collection every two weeks. So can he address this real issue on behalf of rural people and say what he is doing to help us in rural areas?

[Robert Jenrick]

I certainly can. My right hon. Friend is fortunate to have a good Conservative council and it will benefit from the largest ever rural services grant in the settlement, which will give more money to help deliver the sorts of services that his constituents will rely on in a very rural part of the country.

The shadow Communities Secretary as leader of Lambeth Council hiked council tax by more than £100, including a 5% rise at the height of the unemployment crisis presided over by the last Labour Government. Yet today he believes that councils should not even have limited flexibility to do the same. Labour leaders in local government do not want limited flexibility to increase council taxes; they want to abolish the right of local people to veto excessive tax increases altogether, so that they can increase taxes by as much as they want. We all know where that leads for Labour councils: while council tax has fallen under the Conservatives in real terms since 2010, the last Labour Government presided over a doubling of council tax and, in Labour-run Wales, it is trebling.

Perhaps the Leader of the Opposition should pick up the phone, check in with his own local leadership from time to time and get their ducks in a row before opposing the very same flexibility that their councils are the greatest advocates of. From Leeds to Telford to the Wirral to Sefton, the A to Z of Labour local councils have demanded that we allow them to increase council tax “without limit”. They describe in their responses to the local government settlement that keeping their tax-raising instincts in check is frustrating, “an imposition”—not an imposition on tax payers, I hasten to add; they barely get a look-in. It is all there in black and white in the Labour councils’ responses to the local government settlement.