Poll Tax II: the coalition plans even bigger cuts to Council Tax Benefit

The fund for Council Tax Benefit will be cut by a further 8.5 per cent next year, meaning a total cut of 18.5 per cent.

The most politically hazardous of the coalition's welfare measures could yet prove that which has received the least attention: its reform of the council-tax system. As I wrote in a column in this week's NS, the coalition has cut the fund for Council Tax Benefit (which is claimed by 5.9 million families) by 10 per cent, with the result that from April many of the poorest households will pay the tax for the first time. (I'll briefly summarise the piece below for those of you who missed it.)

An analysis by the Resolution Foundation and the New Policy Institute found that, of the 86 councils that have published their plans, 57 intend to introduce a minimum payment of between 6 and 30 per cent of a full council-tax bill. As the government has stipulated that current levels of support must be maintained for pensioners, the burden will fall entirely on the working-age poor. Birmingham City Council, for instance, has announced that it will impose a 20 per cent charge on the unemployed, meaning a minimum payment of £200 a year for households affected.

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."

But the government isn't done yet. At a meeting with council leaders yesterday, ministers from the Department of Communities and Local Government announced that the budget for Council Tax Benefit will be reduced by a further 8.5 per cent in 2014-15, meaning a total cut of 18.5 per cent (see this report in Local Government Chronicle). Sharon Taylor, the Labour leader of Stevenage Borough Council and chair of the Local Government Association's finance panel said: "That is not what we were expecting." It was also confirmed that pensioners will continue to be protected, again meaning bigger tax rises for the working poor.

I would be surprised, however, if the government isn't forced to retreat after this April. When the first council tax bills land on the doormats of the poorest homes, they will, in all probability, be torn up. Those benefit claimants who already face the unpalatable choice of either heating their home or feeding their family, will not stoically accept that they too must pay Britain's most unpopular tax. Yet ministers still seem dimly unaware of the revolt that awaits them in less than three months.

Communities Secretary Eric Pickles plans to cut the fund for Council Tax Benefit by 18.5 per cent over two years. Photograph: Getty Images.

George Eaton is political editor of the New Statesman.

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It's Gary Lineker 1, the Sun 0

The football hero has found himself at the heart of a Twitter storm over the refugee children debate.

The Mole wonders what sort of topsy-turvy universe we now live in where Gary Lineker is suddenly being called a “political activist” by a Conservative MP? Our favourite big-eared football pundit has found himself in a war of words with the Sun newspaper after wading into the controversy over the age of the refugee children granted entry into Britain from Calais.

Pictures published earlier this week in the right-wing press prompted speculation over the migrants' “true age”, and a Tory MP even went as far as suggesting that these children should have their age verified by dental X-rays. All of which leaves your poor Mole with a deeply furrowed brow. But luckily the British Dental Association was on hand to condemn the idea as unethical, inaccurate and inappropriate. Phew. Thank God for dentists.

Back to old Big Ears, sorry, Saint Gary, who on Wednesday tweeted his outrage over the Murdoch-owned newspaper’s scaremongering coverage of the story. He smacked down the ex-English Defence League leader, Tommy Robinson, in a single tweet, calling him a “racist idiot”, and went on to defend his right to express his opinions freely on his feed.

The Sun hit back in traditional form, calling for Lineker to be ousted from his job as host of the BBC’s Match of the Day. The headline they chose? “Out on his ears”, of course, referring to the sporting hero’s most notable assets. In the article, the tabloid lays into Lineker, branding him a “leftie luvvie” and “jug-eared”. The article attacked him for describing those querying the age of the young migrants as “hideously racist” and suggested he had breached BBC guidelines on impartiality.

All of which has prompted calls for a boycott of the Sun and an outpouring of support for Lineker on Twitter. His fellow football hero Stan Collymore waded in, tweeting that he was on “Team Lineker”. Leading the charge against the Murdoch-owned title was the close ally of Labour leader Jeremy Corbyn and former Channel 4 News economics editor, Paul Mason, who tweeted:

Lineker, who is not accustomed to finding himself at the centre of such highly politicised arguments on social media, responded with typical good humour, saying he had received a bit of a “spanking”.

All of which leaves the Mole with renewed respect for Lineker and an uncharacteristic desire to watch this weekend’s Match of the Day to see if any trace of his new activist persona might surface.


I'm a mole, innit.