How much does it cost to save £31,000? Answer—£200,000!
That is the sort of council tax madness the government is presiding over. Government interference in council tax setting across the country reached new heights last week with a number of councils being capped.
At one council the government has decided that residents are being asked to pay 64p per year more than they should. It will cost the council £200,000 to correct that.
In another case it will cost a council £180,000 to save ŒŒŒŒŒ. £180,000, and in so doing give a fine example of the complete lack of financial competence being shown by this government over and over again.
By capping councils the government falls into two traps: it takes responsibility for setting council tax levels, and it also takes responsibility for the services council deliver. It would be better advised to leave well alone.
Thanks to the work of the Conservative administration the government has not capped Medway, but the effects of its interference can be widely seen. Residents rightly complain when the services they value are not available, but letters of complaint should be directed to the government at Whitehall, not the council in Strood.
The government complains about high rates of council tax increase across the country, but the Audit Commission—the government‘s own auditors—has stated in a report that it is the government which is responsible for the tax rises by its constant insistent on increasing council services.
How crazy is that? We have a government that insists on improved services, but insists that there is no money to pay for them! The two things do not go together.
All this would be palatable if we had a government that is actually showing some ability to spend money wisely and deliver better services. Instead we have seen a report published this week which says that the government has wasted £20 billion since it came to power.
We have more spending on health and education and roads. But there are still massive waiting times at Medway‘s hospital. Parents still cannot get the school of their choice, and as for our roadsŒŒŒ..
But at least they have forced one council to give 64p per year back to its residents!