Poll Tax II: the poorest face council tax rises of up to 333%

A single parent working part-time on the minimum wage could pay £404 more in council tax from this April.

Today's Independent splashes on the "new poll tax" set to hit the poorest households this April but Staggers readers will already be familiar with the story.

In a piece published earlier this month, I warned that the coalition's decision to cut the fund for council tax support (currently know as Council Tax Benefit) by 10 per cent would force millions of low-income families to pay the charge for the first time. Since the government has stipulated that current levels of support must be maintained for pensioners (who, partly owing to their greater propensity to vote, have once again been shielded from austerity), the burden will fall entirely on the working-age poor.

If this sounds a lot like the poll tax, it's because it is. The Community Charge, as it was officially known, similarly required each household, irrespective of its income, to pay at least 20 per cent of the tax. Patrick Jenkin, the architect of the poll tax, has even accused the government of repeating the Thatcher government’s mistake. The Conservative peer told the BBC last year: "The poll tax was introduced with the proposition that everyone should pay something . . .We got it wrong. The same factor will apply here, that there will be large numbers of fairly poor households who have hitherto been protected from Council Tax, who are going to be asked to pay small sums."

Today's important report from the Resolution Foundation (I'd encourage you to read it in full), which Matthew Pennycook wrote about this morning, reveals that the situation is even worse than feared. Of 184 local authorities in Englands, 125 plan to introduce a new or higher payment for those on low incomes from this April. Sixty councils intend to demand a minimum payment of 8.5 per cent of a full council tax bill, while 65 plan to introduce a minimum payment of 20 per cent. As a result, many of the 2.5 million out-of-work claimants who currently pay no council tax face a tax increase of between £96 (£1.80 per week) and £255 a year (£4.90 per week), while an additional 670,000 low-paid working families face an increase of up to to £577 a year.

At present, a single parent working part-time on the minimum wage with children in childcare pays £173 a year in council tax. From April, this could rise to £577 - a 333 per cent increase (see table below). A couple with children and one working adult will see their bills rise by between £96 (a 12 per cent increase) and £304 (a 37 per cent increase). 

Click to enlarge

When the poll tax was introduced in 1989, the poor were at least assured that their benefits would rise with prices. But under George Osborne’s plan to uprate working-age benefits by 1 per cent for each of the next three years, rather than in line with inflation, their incomes will be squeezed to an unprecedented degree. The government’s impact assessment showed that the poorest tenth will lose the most in real terms (2 per cent of net income a week), while the next poorest tenth will lose the most in cash terms (£5 a week).

Those faced with the unpalatable choice of either heating their home or feeding their family are unlikely to accept stoically the first council tax bill that lands on their doormat in April. Figures from the Institute for Fiscal Studies show that the average working family will lose £165 per year, while the average non-working family will lose £215.

Confronted by these losses, which household will willingly pay hundreds of pounds in additional tax? Yet, for the sake of saving just £480m a year, the coalition intends to force councils to chase the poorest through the courts to recoup a charge they cannot afford to pay. 

Confident that they can push the blame onto local authorities, ministers appear untroubled by the dramatic tax rises above. But as the poor unite in mass non-payment, they may yet come to rue their complacency. 

A protest in Trafalgar Square in 1990 against the poll tax.

George Eaton is political editor of the New Statesman.

Photo: Getty Images
Show Hide image

Meet the remarkable British woman imprisoned for fighting against Isis

The treatment of Silhan Özçelik shows how confused British policy towards the Middle East has become. 

Last week, a British court sentenced a woman to prison for attempting to join fighters in the Middle East. Silhan Özçelik, an 18-year-old from Highbury, London was sentenced to 21 months for her part in “preparing terrorist acts” under the Terrorism Act 2006. The judge called her a “stupid, feckless and deeply dishonest young woman”.  What all of this misses out is the most extraordinary fact: that Özçelik was not convicted for going to fight for the Islamic State, but for the Kurdistan Workers’ Party – better known as the PKK, one of the only effective and consistent opponents of Isis since the war began.

Volunteering to fight in foreign wars – so long as they are long ago enough – is a celebrated tradition in Britain. In the late 1930s, while the Spanish Republic battled on against a fascist coup led by General Franco, tens of thousands of volunteers from all over the world went to fight for the International Brigades, including 2,500 from the UK. They included future celebrities such as writer George Orwell and actor James Robertson Justice, and commemorative plaques and memorials can now be seen all over the country

Like the International Brigade volunteers, Özçelik allegedly volunteered to fight for an embattled state facing military defeat at the hands of a far-right insurgency. The combat units she might have joined have been the subject of moving portraits in the Guardian and even praise on Fox News. The PKK is a secular socialist organisation, with a streak of libertarianism and its own feminist movements. But because of its military opposition to the often brutal Turkish treatment of the Kurds, the western powers list the PKK as a terrorist organisation; and would-be heroes like Silhan Özçelik are detained as criminals by the British state.

On one level, what Özçelik’s conviction represents is a change in how the state relates to ordinary citizens who fight. In 1936, the rise of fascism was something on our doorstep, which was opposed most fervently not by official western governments but by ordinary folk, dangerous far left subversives and free spirited writers who sailed to Spain – often in spite of their own governments. In today’s wars in the Middle East, the state is absolutely determined to maintain its monopoly on the right to sanction violence.

What Orwell and other volunteers understood was that while western governments might promote values like liberty and deplore the rise of tyranny, they were also duplicitous and unreliable when it came to prioritising the defeat of fascism over the narrow interests of nation and profit. Then as now, western governments were  deeply uneasy about the idea of ordinary people taking up arms and intervening in global affairs, or deciding – by force – who governs them. If the Terrorism Act 2006 had applied in 1936, Orwell would surely have been arrested at Dover and sent to prison.

More pressingly for the current situation, the persecution of the PKK should make you think twice about the motivations and outcomes for military intervention in Syria. Cameron is on a march to war, and, following the Paris attacks, much of the political establishment is now lining up to support him.

At the same time, our court system is imprisoning and persecuting young women who try to take up arms against Isis. It is doing so at the behest not of our own national security, which has never been threatened by the PKK, but that of Turkey. Turkey’s military is actively targeting Kurdish forces, and has recently stepped up these attacks. There is a wealth of evidence, not least its behaviour during the recent siege of Kobane, to suggest that Turkey – Britain’s only formal NATO ally in the region – is tacitly collaborating with Isis in an attempt to defeat both Assad and the Kurds.

As the government rushes to war in Syria, much of the media attention will focus on Jeremy Corbyn’s awkward task of holding his anti-war line while persuading his party and Shadow Cabinet not to split over the issue. Others will focus, rightly, on the complexity of the situation in the region and the question of who western air-strikes are really there to support: is it Assad, the murderous dictator whose regime has itself been linked to the rise of Isis; Turkey, which is seemingly focussed entirely on defeating Assad and the Kurds; or the soup of organisations – including the Al-Qaeda franchise in Syria – which constitute the anti-regime rebels?

But Özçelik’s conviction should also raise a more fundamental concern: that the contradictions and complications that we are so used to associating with the Middle East lie at the heart of British and western policy as well. If the British state persecutes, rather than supports, the few secular and progressive organisations in the region who are fighting Isis, whose interests is it really serving? And if we don’t trust those interests, how much trust can we really place in it to act on our behalf in Syria?

You can sign a petition calling for Silhan Özçelik’s release here, and a petition calling for the decriminalisation of the PKK here.