I am a little surprised to see little or no comment about reports of another inflation busting council tax increase of 4.5% for 2008/09. With inflation at 2.2% in Jan 2008 (http://www.statistics.gov.uk/downloads/theme_economy/CPI.pdf) this would be an increase of more than twice the inflation rate.
However last year was even worse with an increase of over 3 times the rate of inflation!
Is it that people are now just resigned to the fact that the council are allowed to get away with such large increases? Certainly my wage increases don't keep pace with inflation!
Chris
Hitchin
I thoroughly agree that something should be done to champion the rights of the common citizen and councils' should adopt more accountability surrounding their expenditure. Especially when a vast proportion of the UK's councils were caught off guard by a number ofthe Icelandic Banks who have now, ironically, frozen their assets. Who will pay for that investment error? Who will cover that loss? Will the council write it off if they cannot reclaim more than the average£50k that is secured? Will the tax payer ultimately have to fill this deficit?
Another question is if a council needs to raise the level of council tax, what is it doing with that money and if it's being invested, how are the returns not being reflected in the payment rises that we are seeing? That's assuming that not all councils were stupid enough to invest in an Icelandic bank.
Although I'm not sure we'll see a revolution or a civil war just yet. Not that we couldn't do with one...
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