Council Tax

Lord Kennedy of Southwark Excerpts

Thursday 14th March 2019 Lords Chamber

[Lord Bourne of Aberystwyth]

My Lords, when the national statistics are published, the calculation is almost certainly going to be that the level is 4.8%, but we cannot be absolutely certain about that. Of course, local authorities have the option of going to their electorate and seeking a higher level of council tax. The fact that they do not is indicative of the fact that they know what the result would be.

[Lord Kennedy of Southwark (Lab Co-op)]

My Lords, I draw the attention of the House to my relevant interest as a vice-president of the LGA. Can the Minister explain to the House the policy idea behind shifting the burden of local government funding further from central government and more on to the council tax payer?

[Lord Bourne of Aberystwyth]

My Lords, as the noble Lord will know, the Government are looking at the fair funding formula at the moment—I am trailing the next Question—but that does not transfer a burden; it ensures that we have equity across the piece. It does not make the cake any larger; it ensures that there is fairness, as the noble Lord will know. The levels of council tax contributing to local authorities vary enormously: 84% in Surrey and Buckinghamshire; 20% in the City of London. We are not seeking to address that. Although it may look innately unfair, closer attention will show that it is not.