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Council Tax increase is a con trick and a rip-off say Lib Dem Councillors

Liberal Democrat Councillors in Luton have highlighted official figures showing that the 3.44% hike in Council Tax proposed by the Labour Council will cost Luton Taxpayers almost £2.2M but will only benefit the Council by £595,000.

“That’s because the government is offering a £1.6M extra grant if the Council does not increase the Council tax,” says Liberal Democrat leader, David Franks. “In dumping a near £2.2M extra burden on Luton Council Tax payers the Council is saying no to an extra £1.6M in government grant and will only be £595,000 better off. From local taxpayers perspective it’s a con and a rip off.”

“The increase in income for the Council if they took the government grant and left Council tax the same as last year would be £1.6M. They increase Council income by £2.2M if they put the tax up by 3.44% but lose the £1.6M government grant. So the Labour council only gets £595,000 more but charges Luton taxpayers £2.2M. That’s the economics of the mad house.”

Only six other Councils have said they are planning to refuse the government Council Tax Freeze Grant and it is clear most Councils will freeze their Tax and accept the government extra grant for doing so.

The actual figures are –

Government grant offered if tax frozen £1,582,515
Council tax income with no increase £63,300,585
Total Council Tax & grant if tax frozen £64,883,100
Council income with 3.44% Tax increase and no grant £65,478,106
Difference £595,006
Extra tax paid by Luton residents with a 3.44% tax increase £2,177,55


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