10 June 2005
Read the Government’s response to this epetition.
Full response:
We have set up an Independent Inquiry by Sir Michael Lyons to consider the detailed case for changes to the present system of local government funding, including reform of council tax to make it fairer and more sustainable.
The Inquiry will also consider options other than council tax for local authorities to raise supplementary revenue, including local income tax, reform of non-domestic rates and other possible local taxes and charges.
The Inquiry is due to report by the end of the year and will make recommendations on any changes that are necessary and how to implement them.
Help with council tax bills is available to people on a low income through Council Tax Benefit (CTB). The Department for Work and Pensions is taking active measures to ensure that people are made aware of CTB and are encouraged to take up their entitlement to what is in effect a council tax rebate.
Alongside CTB for the poorest pensioners, we are helping many more elderly people with their council tax bills. We gave £100 to households with someone 70 or over for 2004/05. In 2005/06 households with someone aged 65 or over will receive £200, unless they are receiving the Pension Credit guarantee. People getting the guarantee element of Pension Credit are already entitled to a 100 per cent rebate on their council tax bills. Households with someone aged 70 or over getting the Pension Credit guarantee will receive £50 to help with living costs.
Our generous grant settlements to local Government, and considered use of our capping powers, have led to an average council tax increase in 2005/06 of 4.1 per cent - the lowest increase in more than a decade - and the second lowest ever.
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