Government's cowardice over council tax has left it in a mess

When council tax bands have little to do with today's value, how can it replace a mansion tax?

Simon Jenkins writes in today's Guardian that it's strange that Vince Cable carries on talking about a mansion tax when we already have one, called the mansion tax:

England's property-based council tax stops at the present H-band. This means that the same tax is paid on all houses valued at more than £320,000 at 1991 prices (roughly £950,000 today). In parts of London, this means half the houses pay the same. Nick Clegg is right to protest that "it cannot be right that an oligarch in a £4 million palace in central London pays the same council tax as someone in a four-bedroom family home". It is ludicrous.

So what is the problem? The answer is no politician dares change it. All are cowards. They bid the rest of us to show spine, come to the mark, tighten our belts and take cuts without complaint. Yet faced with an equitable fiscal reform that could net billions in revenue, they cringe and whimper and protest it is all too hard. Like tackling drug illegality or the criminal justice system, politicians who think that something is politically toxic end up making it so.

Jenkins suggests that if the Liberal Democrats weren't cowards, they would introduce new tax bands, above band H, and charge increasing levels of council tax on them, "perhaps triggered at half-million pound steps".

But the real way we can tell that governments – not just the Lib Dems – are cowards is that, even aside from using council tax to introduce a mansion tax by proxy, they haven't even done the most basic housekeeping.

As Jenkins suggests, council tax bands are levied on the value of houses in 1991. If a rising tide floats all boats, then that's not too problematic – the most expensive houses in 1991 would still be in band H now, and the right people would be taxed the most. But it doesn't float all boats. Some houses have risen in value faster than the average, while some have risen in value less fast.

Despite this, there has never been a reassessment of council tax bands, and so many people are paying tax based on assets they do not actually have. Introducing higher tax bands without reassessing the existing houses would merely compound that error.

Doing so has nothing to do with raising revenue, and everything to do with basic fairness. If governments can't even bring themselves to do that, don't expect them to go much further with actually using council tax for good.

Houses for sale. But what's the council tax on them? Photograph: Getty Images

Alex Hern is a technology reporter for the Guardian. He was formerly staff writer at the New Statesman. You should follow Alex on Twitter.

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Why Theresa May is a smuggler's best friend when it comes to child refugees

Children prefer to disappear than trust the authorities.

On Monday, Theresa May abolished the post of minister for Syrian Refugees. On Tuesday, a House of Lords select committee report found there were 10,000 migrant and refugee children missing in the EU, of which Britain is still technically a part. And smugglers across the continent raised a glass.

Children do not stay still. In 2013, Missing Children Europe reported that half of unaccompanied children placed in reception centres vanished within the next 48 hours. One explanation is that they fall prey to the usual villains – pimps and gangs. 

But there is another explanation. Refugee and migrant children have so little trust in the authorities that they would rather disappear and put their faith in the underworld. 

One reason for this is that under EU law, asylum seekers are returned to their first point of entry, which is likely to be an overcrowded Greek port rather than a city with education facilities and job prospects. 

Children will go to extreme measures to disappear. The report noted:

“We were particularly troubled to hear of children in Italy and Greece burning or otherwise damaging their fingertips in order to avoid registration, in many cases because they were afraid of being detained or forcibly returned to transit countries having reached their final destination.”

Children are also desperate to find their families. The EU’s Family Reunification Directive should in theory reunite families who have successfully sought asylum, but the UK has opted out of it (and now the EU altogether). Other EU member states have moved to restrict it. The UK has opted into the Dublin Regulation, which allows for family reunification. 

This is partly due to a suspicion that family reunification acts as an incentive for families to send children first, alone. But the report found no evidence of that. Rather, it is usually a case of parents trying to protect their children by sending them out of a dangerous situation. 

The process can be achingly uncertain and slow. Smugglers understand how impatient children are. Two MEPs told the select committee about the port in Malmö, Sweden:

"Traffickers await the arrival of minors, telling them that: 'Well, we can get you to your family much quicker than if you go through the system here' and that 'Getting a guardian will take ages, and then they do the age assessment, which is intrusive. Don’t do that. Just go there, call this guy, take this mobile and they’ll take care of you.'”

In his brief time as Syrian Refugees minister, Richard Harrington brought the topic of unaccompanied minors to MPs again and again. He promised to improve the speed at which applications under the Dublin Regulation were processed. On 13 June he told MPs: “We are doing our absolute best to speed it up as much as we can.”

His role has now been absorbed into the Home Office. No. 10 described it as a temporary position, one no longer needed now the resettlement programme was underway. When the UK finally triggers Article 50 and begins Brexit, it can also leave its EU obligations behind as well. May, the former Home secretary, voted against allowing in 3,000 child refugees.

This does not bode well for asylum policy in Brexit Britain. Meanwhile, with no fast legal route to family unification, smugglers can look forward to the kind of bumper profits they enjoyed in 2015

The consequences can be fatal. Masud, a 15-year-old unaccompanied Afghan, travelled to Calais in the hope of reaching his sister in the UK under the family reunification rules. 

As the report put it: “Masud died in the back of a lorry while trying to reach the UK just before the New Year, having lost hope that his claim to join his sister would ever be heard.”