Press Release: Post-election Tax Rises Under Labour

November 16th, 2009

Labour’s plans for post-election tax rises exposed, warns Karen
Labour Manifesto calls for barrage of new local taxes on residents in Redditch

Reddtich faces a barrage of hikes in local taxes under Labour plans, Karen, warned this week. A new Labour Party Manifesto for a ‘fourth term’ has outlined plans to introduce higher council tax bands, above inflation rises in businesses on local firms, bin taxes and anti-car taxes in towns and cities.

Council tax rebanding: This official Labour Manifesto for local government was published at the recent Labour Party conference. It calls for a council tax revaluation and higher council tax bands “to make it a more genuinely progressive tax”. Labour’s deputy leader, Harriet Harman, is already drawing up plans for council tax rebanding. The Government has changed the law to give Ministers powers to impose higher council tax banding – changes which were supported by the Liberal Democrats.

Council tax bills in Redditch have risen by 126% since 1997, taking the bill on a Band D home to £1463. A Government review has provided a blueprint for how council tax rebanding, and suggested a new ten-band system. More homes would be sucked into the higher bands, and the amount that higher bands pay would increase too. Council tax bills in Redditch could rocket to as much as £7799 a year under the new system.

Higher business rates: The Labour Manifesto calls for above inflation rises in rates for local firms, ending the explicit link between business rates and inflation.

Bin taxes: The Manifesto calls for more ‘bin bully’ policies, with “financial incentives and our regulatory powers” to “move away from dealing with residual waste in the black bin”.

Road pricing taxes: The Manifesto signals yet another tax assault on drivers, with the imposition of “road pricing” in urban areas, with no offsetting tax cuts elsewhere. It also signals the extension of workplace parking taxes, currently being trialled in Labour-run Nottingham.

Karen said:
“Labour’s new town hall Manifesto exposes Gordon Brown’s plans for massive hikes in local taxes on people in Reddtich. This is a tax bombshell primed to explode after the general election.

“Under Labour, new council tax bands will be used to punish families and pensioners who have saved and invested in their homes, with some bills hitting the 37k mark.

“Only Conservatives are opposing these tax-raising plans and standing up for struggling residents who are paying more and getting less under this Labour Government.”