The Chancellor will unveil the Autumn budget at the end of November. It’s not going to be easy, but I can’t believe she’ll increase taxes on work again, but who knows. The continued freeze on personal allowances means taxes on working people are going up in real terms anyway, whatever they say. Then, in December, the Fair Funding Review and financial settlement for local councils will be announced. The picture for Devon is not looking great. On top of this, we’ll have to fund the wretched Local Government Reorganisation. Costs for this are now estimated to run into the tens of millions, all funded by local council taxpayers. They tell us austerity is over, but they’re doing a damn good impersonation.
Last year, at the eleventh hour, the government withdrew the Rural Services Delivery grant. That cost the county council about £10 million and the districts a further £4 million between them. The grant was repurposed and redistributed. Devon got a great fat zero from this repurposing. I know we’re fortunate to live in such a beautiful county, but services cost more to deliver in rural areas. Just look at our school transport bill. If the government fails to recognise this extra cost, it will, as usual, be the most vulnerable who suffer the most. There are pockets of deprivation hidden amongst the scenic beauty. Lack of opportunity, often linked to poor transport, means we have some of the lowest levels of social mobility in the country.
The government will claim, as always, that core funding is rising. In Devon last year, the increase came entirely from higher council tax, presented as Treasury generosity, but in reality paid by local taxpayers. They take credit for the extra money, then blame local councils for raising taxes. It’s dishonest — a sleight of hand. Council tax is regressive and unequal: people in Westminster mansions pay about half what those in modest Devon homes do. It’s neither fair nor right.
We’ll almost certainly put up council tax by the maximum 5% we're allowed. Don’t want to, but we’ve got no choice. It’s the same across the country, including the new Reform-run councils. They had promised to slash local government spending and, with it, council tax. Latest reports are that they’ll be following the rest of us with these unwelcome rises. Some of their national leaders are still thrashing around, talking nonsense about mass inefficiencies and unrealisable savings. Meanwhile, for those actually doing the job, reality is dawning that after years of austerity, there is very little fat on the bone. Of course, there are some efficiencies to be found and new ways of doing things, but without a radical overhaul of local government funding, we’ll struggle to keep our heads above water. It’s the same for all of our public services, including the NHS. If we want the services, and I’m pretty sure most of us do, we’ve got to pay for them with taxes. There needs to be a debate around the taxation regime required. People will have their own preferences, but I struggle to accept a system which means the less well off are paying more as a proportion of their income and wealth than those more fortunate. Others might disagree, but we need to have this debate.





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