‘Council Tax shouldn’t punish those who have the least or those we owe the most’

Last year we marked the 80th anniversary of the end of the second world war. Gathering at memorials and neighbourhood events across the country we remembered the price paid by so many for the freedoms and way of life we enjoy today.

Like most communities, Hammersmith & Fulham has a deep connection to the war effort. It was at the old St Paul’s School building on Hammersmith Road where Montgomery planned the D Day landings, and presented the final plans to the King, Churchill and General Eisenhower.

Today, just across the road from this site, Number 17 Company of the Coldstream Guards has established its home. They have quickly become a central part of our community, working with local schools and becoming a fixture at civic events.

They are a great reminder that we should not wait until 11th November every year to pay tribute to those who put themselves in harm’s way to keep us safe. Around the world brave men and women are risking their lives in our Armed Forces: keeping the peace, protecting vital global shipping lanes, and working alongside allies to deter further Russian aggression. 

READ MORE: ‘Championing all those who served is the true meaning of remembrance day’

That is why in Hammersmith & Fulham, as a small token of our appreciation for their service and sacrifice, we are cutting Council Tax for all military veterans by 25% in this year’s budget.

Council Tax is a pretty awful tax. It takes no account of a resident’s ability to pay and is based on property values from over 30 years ago. The IFS describes it as out of date, arbitrary and highly regressive, saying it is “ripe for reform”. 

This is why we have worked so hard to keep it low in Hammersmith & Fulham, maintaining the third lowest rates in the country. But who pays is just as important as how much they pay.

While local councils can’t reform Council Tax, we do have a mechanism to make it fairer, through Council Tax Support Schemes. Since 2013, councils have been required to provide their own Council Tax Support Scheme, setting out how they will help those on low incomes to pay.

This was previously provided by central government, but responsibility was devolved by the Tory-Liberal Coalition, who subsequently cut councils’ Revenue Support Grants that funded the schemes. Since then, most councils have reduced the support provided. In Hammersmith & Fulham our Grant funding from central government has been cut by 54% in real terms since Labour lost power in 2010.

But despite this, we have maintained the support for those who need it most, including being one of just a handful of councils across the country to provide 100% relief for those least able to pay.

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And our Labour administration has gone further, expanding the scheme by taking foster carers and care leavers out of Council Tax completely. Today almost 4 in 10 households benefit from a discount.

Councils are currently in the process of setting their budgets for the year. If you are lucky enough to live in an area with a Labour-controlled council, these schemes should be a source of great pride when campaigning in local elections. If not, take a look at what the council is doing to support in your area, and hold them accountable for any cuts they make to the support for their most vulnerable residents.

The Labour government could show its support for this local spending, by reinstating full funding specifically for Council Tax support Schemes, so those least able to pay are insulated from the seemingly ever-increasing burden of regressive Council Taxes.

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Nye Bevan said that “the language of priorities is the religion of socialism”. There can be no greater priority for those of us on the left than supporting those who need it most. This is what Council Tax Support Schemes do, and why Labour councils prioritise them when in power. To ensure that those least able to pay, pay the least and support is given to those we owe the greatest debt.

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