William Eichler 06 September 2017

Council chiefs hit back at ‘stealth tax’ accusation

English councils are imposing ‘stealth taxes’ on residents, think tank claims, but council chiefs argue they are bringing in millions less from fees and charges than five years ago.

A new report from the TaxPayers’ Alliance accuses local authorities in England of imposing ‘stealth taxes’ on residents by charging more for services, even in instances where they have been reduced.

In an analysis of more than 22 services, the free market think tank found the charges and fees for some of the most visible services, such as waste collection, had ‘rocketed’, with their proportion of total service expenditure rising from 8.7% to 9.6%.

Fees and charges for waste collection, for example, have increased, despite many councils curtailing the number of bin collection days. Charges to individuals rose 37% between 2010 and 2016.

There were increases for cemetery, cremation and mortuary services during the same period as well. While the number of deaths rose by only 6.5% in England, sales, fees and charges still increased by 19.8%, to £291m in 2015-16.

Similar increases also occurred in airports, harbours and toll facilities (109% between 2015-16), and trade waste (12%).

‘These are considerable rate rises which will hit residents in England hard,’ said TPA chief executive John O’Connell.

‘In many instances people are being asked to pay more for services that have actually been reduced, such as fortnightly bin collections.

‘Councils should ensure that they cut out all wasteful spending before asking taxpayers to pay big fees on top of their Council Tax bill.’

The think tank did, however, acknowledge that some of the services they looked at saw a reduction in fees.

Responding to the report, Cllr Claire Kober, chair of the Local Government Association’s (LGA) resources board, said: ‘This report clearly shows that councils receive almost £500m less in income from fees and charges than they did five years ago.

‘Faced with escalating costs and unprecedented funding cuts since 2010, this is a tremendous effort by councils to keep fees and charges low for hard-pressed residents.’

Cllr Kober also added that the ‘bigger picture’ was that councils face an overall £5.8bn funding gap by 2020.

‘Even if councils stopped filling potholes, maintaining parks and open spaces, closed all children’s centres, libraries, museums, leisure centres, turned off every street light and shut all discretionary bus routes they still would not have saved enough money to plug this gap by the end of the decade,’ she said.  

SIGN UP
For your free daily news bulletin
Highways jobs

Head of Capital Delivery

Redbridge London Borough Council
£99,963 - £103,893
Momentum is building in Redbridge. An invigorated sense of direction and potential is setting ambitious plans for the future. Redbridge, London (Greater)
Recuriter: Redbridge London Borough Council

Corporate Director Health and Adult Services

North Yorkshire Council
£141,233 to £164,272 plus relocation support
People living longer, healthier, independent lives Northallerton, North Yorkshire / Countywide
Recuriter: North Yorkshire Council

Data Technician Level 3 Accessible Apprenticeship

Essex County Council
Up to £14567.00 per annum + Pension
Data Technician Level 3 Accessible ApprenticeshipPermanent, Full Time£14,567 per annum rising to £23,557 per annum on the second year Location
Recuriter: Essex County Council

Home Finder Officer

Durham County Council
Grade 7 £30,024 - £33,699
We are looking for a motivated individual to work as part of the Home Finder Service which includes Fostering, Residential and Supported Accomodation, Durham
Recuriter: Durham County Council

Quality Officer

Durham County Council
Grade 7 £30,024 to £33,699 per annum
Are you passionate about driving quality and continuous improvement in employment and skills services? Do you have a keen eye for detail and a proacti Seaham
Recuriter: Durham County Council
Linkedin Banner