Two new Council Tax bands proposed
Summary
The
'Lyons
Inquiry into Local Government' examines the function of local government
and considers the case for changes to the present system of local government
funding in England.
The remit was extended to cover questions
relating to the future role of local government as well as how it is funded,
and also to consider the implications of the
'Barker
Review of Land Use Planning' , the
'Eddington
Transport Study' and the
'Leitch
Review of Skills'.
His overall conclusions are as follows:
- Local government is an essential part of our system of government
- Central and local government needs to work more closely together as part of
a single system, and local people should have a greater say in setting local
priorities to enable authorities to manage pressures on public expenditure and
improve satisfaction
- A mosaic of reforms is needed in the short term to
address the most urgent problems, paving the way for more radical reforms in
the medium- and longer-term.
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Law-Making Explained
This is an ancillary
report to
'Budget
2007' , it is an independent review commissioned by HM Treasury.
How does it affect me?
As a council
tax-payer, this affects you.
Recommendations include:
- Automated council tax benefit
- An end to capping
- Revaluation of properties for council tax
- New bands with higher
bills for those in more expensive properties and lower bills for those in the
cheapest
- Consider reserving a fixed proportion of income tax for local
government
- Longer-term options should include local income tax and
relocalisation of the business rate.
Sir Michael concludes that
council tax is not 'broken', but that it is under too much pressure, is seen as
unfair, and has some limitations in that it is not a naturally buoyant source
of revenue.
Find out more about
Independent
Reviews on the Treasury website.
Read more about
Council
Tax on Directgov.
