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With Nottingham having joined Birmingham city council in issuing a section 114 notice and effectively declaring bankruptcy, if the experience from other councils is anything to go by, we know that local taxpayers are going to be in for a rough time.
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TPA researchers have been crunching the numbers to see just what residents of Birmingham and Nottingham can expect to happen to their council tax bills and it doesn’t make for pretty reading. If rates in Birmingham and Nottingham increased by the ten per cent seen in Slough and Thurrock, Band D bills would increase by £190 and £241 respectively. If they went up by the 15 per cent that Croydon council was allowed, bills would go up by the eye-watering sums of £286 for Birmingham and £362 for Nottingham.
Speaking to the Birmingham Mail, our chief executive, John O’Connell, warned: “Local taxpayers rightly worry they will have to pick up the tab for years of shocking mismanagement and risk-taking by town hall bosses. Urgent action will be needed to limit the damage and avoid placing all the burden on household budgets.”
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Why does this matter? Well, this week, the Local Government Association claimed that one in five town hall bosses think it fairly or very likely that their council will go bust in the next 15 months. Whilst the number of councils declaring bankruptcy still remains in single digits, if these latest warnings prove accurate, the numbers will increase dramatically and millions of ratepayers across the country will feel the effects. With such dire predictions, town hall bosses must urgently redouble their efforts towards reducing inefficiencies, cutting waste and ensuring precious funds are focused on protecting the services residents rely on.
This is why our work, and your support, is so important. If you’ve not already done so, sign our petition calling for an end to council tax rises and share it with your friends and family. The more of you who stand with us, the better chance we have of winning. And if you can, please donate to the TPA here. We can’t do it without you.Â
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TaxPayers' Alliance in the news
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Cost of the covid inquiry
The eyes of the nation (or at least some of them) were back on Boris Johnson this week as the former prime minister gave evidence to the covid inquiry. Boris is just the latest name in a long line of major players to speak before the nation’s inquest into the pandemic. But with the inquiry currently more focused on the intrigue, gossip and drama from within government at the time, and given predictions that it’s set to last until summer 2026, TPA researchers got their calculators out to work out just how much this piece of political theatre could end up costing.
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In figures cited in the Daily Mail, the TPA team reckon the whole thing could end up costing taxpayers ÂŁ156 million, or over ÂŁ100,000 per day. This would make it the most expensive per day (and the second most expensive overall) public inquiry since 2005. As John told the paper: "While it is crucial that lessons are learned from the pandemic, there's little sign at the moment that we will be left with anything but a huge bill.” Â
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Civil servants demand four-day week
Despite the flawed trial in South Cambridgeshire, civil servants in the Department for Environment, Food and Rural Affairs are demanding a four-day week, with no loss of pay.
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With our research showing that a part-time public sector would cost £30 billion in lost working time, our media campaign manager, Conor Holohan, blasted the latest fantasy from work-shy civil servants in the Daily Mail: “Taxpayers are sick to the back teeth of seeing jumped-up bureaucrats placing their own interests above those of the country.” Well said!
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Lower, simpler, and more secure
When it was revealed that the UK’s 100 largest firms accounted for ten per cent of all tax receipts last year, and 0.3 per cent of individuals paid 24 per cent of all income and capital gains taxes, John was quick to point out the need for a lower, simpler tax system.
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Speaking to City A.M., John explained: “High taxes are damaging growth, squeezing household budgets and risking an exodus of high-value taxpayers. There’s a danger that some of the biggest contributors leave the UK for friendlier countries and take jobs and businesses with them.” Ministers must focus their efforts on reducing the tax burden and delivering a competitive tax regime that benefits all taxpayers.
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Could double digit council tax rises be on the horizon after town hall bankruptcies?
In this week’s blog, TPA researcher, Jonathan Eida, takes a look at Michael Gove’s appearance before the Levelling Up, Housing and Communities Committee, in light of Nottingham’s bankruptcy and asks the question: are there more on the horizon?
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As Jonathan explains: “Taxpayers will be increasingly worried that Mr Gove did not reject the possibility that councils could be allowed to raise council tax by more than the current maximum increase threshold… Any attempt to weaken this stance will present a threat to taxpayers who are already facing the highest tax burden in 70 years, and who will not take kindly to being forced to cough up to pay for the incompetence of their local council.”
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As we’ve warned in the past, the cost of heat pumps could prove to be eye-watering for taxpayers. But even we were shocked to learn that the cost of “decarbonising” a small Crown Office building in Scotland has ballooned to a staggering £3.5 million!
With public finances under pressure, taxpayers’ money must be focussed on delivering frontline services!
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Benjamin Elks
Operations Manager
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