An end to stamp duty? What the rumoured new property tax could mean for London home movers
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The Independent
19 minutes ago
- The Independent
Rural taxpayers set to contribute ‘unfair' levels of funding for urban-area services
The government have been warned that people in rural areas who pay council tax will contribute 'unfair' levels of funding for services. Councils councils say that money will be used for urban communities under proposed government reforms. Large rural authorities have also highlighted that maximum council tax increases will be needed to deliver necessary core budget increases for essential services over the next three years. Although, in its submission to the government's consultation on planned reforms, known as the 'fair funding review 2.0', the County Councils Network (CCN) said the proposals were 'better than feared'. The network welcomed some elements that determine funding levels, such as an indicator for remoteness and a new formula for social care and school transport allocations, which it said 'better recognise the needs' of the 38 county areas. But CCN called on the government to reconsider its broader approach, insisting the proposals 'place a disproportionate burden on council taxpayers in county areas to fund local services and redistribute funding to urban areas'. Modelling showed that under the proposals £1.6 billion in council tax income generated in county areas will be redistributed across the country. This is due to a decision by ministers to include 100 per cent of local council tax receipts when allocating funds in a bid to 'equalise' revenue across the sector, in a departure from the previous approach which took in 85 per cent. CCN said this means 32 of the 38 county and rural authorities will lose an additional £400 million in a process that would represent an 'overwhelming' benefit for urban metropolitan boroughs. The analysis showed 22 authorities will receive increases in direct government funding totalling £845 million under the plans. But on average these councils will receive 70 per cent of their overall increase in core spending power, the official measure of funding available for services, from council tax rises specifically. In addition, 16 other councils, including some located in the North and the Midlands, will experience funding cuts totalling £470 million. With no increase in direct government funding, the entire increase in core spending power for these authorities will come from council tax rises, CCN said. 'One third of council tax income raised in these areas over the three-year period is needed to offset cuts to funding and prevent them falling below a proposed 0 per cent funding floor,' the network added. Across all 38 county and rural unitary councils, direct grant funding will increase by £374 million, with 90 per cent of the total uplift in core spending power coming via maximum 5 per cent annual council tax rises. The modelling suggests this scenario is in stark contrast to the impact on councils in urban areas, with nearly 50 per cent of metropolitan authorities' extra resources coming from additional grant funding of £1.2 billion over three years. Overall, in the absence of maximum annual council tax rises over the period, the analysis showed 33 of the 38 county and rural unitary authorities would experience a real-terms reduction in funding, CCN said. The new government grant would fund just 9 per cent of the estimated £4.4 billion increase in the cost of providing services in county and rural areas over three years, while the boost in Government funding for metropolitan authorities would fund half of the total £2.4 billion increase in estimated costs of services in those areas. CCN said it is 'simply unrealistic' to expect some of England's largest social care councils to 'provide life critical services while receiving deep cuts in government grant' and called for 'significantly' more funding to prevent 'unsustainable cuts'. Chairman of the CCN Tim Oliver said: 'Some 16 county and rural councils across the length and breadth of the country will see reductions in grant funding, while the government's proposals place a disproportionate burden on council taxpayers in county areas to fund local services and redistribute funding to urban areas. 'Those facing cuts in government funding will inevitably have to reduce vital frontline services, while the reliance on council tax rises leaves even those with modest funding increases facing an extremely challenging funding outlook. 'While we recognise the need to take account of how much councils raise in local taxation, the government's proposals to fully equalise unfairly redistribute hundreds of millions of local council tax to other areas, while weakening the incentive to build homes.' Sir Stephen Houghton, chairman of the Special Interest Group of Municipal Authorities, backed the government's approach. He said: 'It is absolutely right that any new funding system must fully reflect the wide disparities in councils' ability to raise income through council tax. 'The failure to do so over the past decade has led to disproportionately deep cuts in the most deprived areas, worsening inequality across the country.' The government's consultation on the reforms closed on Friday. A Ministry for Housing, Communities and Local Government spokesperson said: 'We do not recognise the (CCN) analysis. The current, outdated way in which local authorities are funded has left communities behind and damaged local services. 'This must change and is why we are taking decisive action as part of our Plan for Change to reform the funding system so we can improve public services, while maintaining the previous government's referendum threshold on council tax rises so taxpayers have the final say and are protected from excessive increases.' Conservative leader Kemi Badenoch said: 'Yet again the Labour government are showing utter contempt for people living in rural Britain. 'The family farms tax has been devastating for British farming and scrapping the rural services grant has put rural councils under enormous pressure. Now this latest spiteful change will steal more money out of the hands of county councils and send it straight into Labour-run urban areas. 'Only the Conservatives are serious about standing up for our rural communities' Liberal Democrat local government spokeswoman Vikki Slade said the reforms could be severely detrimental to some areas. Ms Slade said: 'Councils across the country are already teetering on the edge after years of Conservatives' neglect of local funding and services – from bus services cuts in rural areas to the rising costs of social care. These ill-thought-out reforms only risk leaving parts of the country significantly worse off. 'To truly help local authorities, the government should urgently look at supporting councils who receive the least grant funding and those that face additional pressure on services in rural and coastal areas, to help them with spiralling costs.'
Scottish Sun
19 minutes ago
- Scottish Sun
Labour's migrant hotels policy dealt major blow after council WINS battle to stop asylum seekers being housed there
ASYLUM seekers will be kicked out of a flashpoint hotel after a council yesterday won a court battle to ban them living there. The decision is a huge blow to the Government's policy of housing migrants in hotels. 4 Police outside asylum hotel The Bell in Epping, Essex Credit: PA 4 Protesters demonstrate against illegal migrants being housed in the hotel Credit: Darren Fletcher 4 A local downs bubbly at the hotel after the court ruling Credit: n.c A High Court judge ruled the move to accommodate the migrants over paying customers at The Bell Hotel may breach planning rules. Epping Forest District Council launched the legal challenge after protests erupted in recent weeks. Public anger grew after a migrant living at the hotel in Epping, Essex, was charged with sexual assault. Shadow Home Secretary Chris Philp said the ruling throws Labour's asylum policy into chaos. 'Plans thrown into chaos' Other councils are now poised to launch their own legal challenges to the Home Office scheme. Twelve hotels located in areas where Reform UK has a majority are understood to be planning their own court battles. Corina Gander, Tory leader of Broxbourne Borough Council, Herts, said the decision had set a 'massive precedent' and boosted their efforts to close a migrant hotel. Yesterday's temporary injunction, subject to appeal, means everyone being put up at The Bell must leave before September 12, with a hearing to decide whether to make it permanent later in the year. Home Secretary Yvette Cooper's 11th-hour bid to get the case dismissed was refused by the judge. A lawyer for the Home Office warned the decision would 'substantially impact' its ability to house asylum seekers in hotels. Migrant hotel protesters take to the streets again as demonstrations spread across the country in weekend stand-off Edward Brown KC also said it 'runs the risk of acting as an impetus for further violent protests'. Border security minister Angela Eagle said the Government aimed to close all asylum hotels by the end of this Parliament. She said: 'We will continue working with local authorities to address legitimate concerns. 'We will carefully consider this judgment.' Mr Philp said: 'This throws asylum accommodation plans into chaos. "Many councils will now follow Epping's lead and take legal action to avoid hundreds of young male illegal immigrants being housed in the middle of their communities. All things being equal, The Bell will be empty by September 12, and that's really important for Epping Forest. Philip Coppel KC 'We now know many crimes including rapes and sexual assaults have been committed by illegal immigrants in asylum hotels, and many local councils will want to protect their residents from this.' After a hearing in London's High Court last week, Mr Justice Eyre said Somani Hotels Limited, owners of The Bell Hotel, had 'sidestepped public scrutiny' by not applying for planning permission to convert it to migrant use. In his judgment, he said that while the council in Epping had not 'definitively established' Somani Hotels had breached planning rules, 'the strength of the claimant's case is such that it weighs in favour' of granting the injunction. He also said the fear of crime being committed by migrants was a 'relevant factor' and it is 'understandable' that recent arrests 'form a basis for the local concern'. 4 Council leader Chris Whitbread hailed the judgement but urged locals not to gloat Credit: EPA Philip Coppel KC, for the local authority, said the situation was 'wholly unacceptable' and provided a 'feeding ground for unrest'. He added: 'There has been what can be described as an increase in community tension, the catalyst of which has been the use of The Bell Hotel to place asylum seekers. 'It is not the asylum seekers who are acting unlawfully. 'It is the defendant, by allowing the hotel to be used to house asylum seekers. 'It really could not be much worse than this.' Council leader Chris Whitbread hailed the judgement. Outside the Royal Courts of Justice, he said: 'All things being equal, The Bell will be empty by September 12, and that's really important for Epping Forest. 'The Government have to address the bigger issue of the illegal asylum problem, but in Epping Forest we will stand up for our residents.' Mr Whitbread also urged locals not to gloat. He said: 'Don't protest. 'This is the beginning, not the end.' This community stood up bravely, despite being slandered as far-right, and have won. Nigel Farage Reform UK leader Nigel Farage called it 'a victory for the parents and concerned residents of Epping'. He said: 'This community stood up bravely, despite being slandered as far-right, and have won. 'They represent the vast majority of decent people in this country. 'Young, undocumented males who break into the UK illegally should not be free to walk the streets anywhere. 'They must be detained and deported. 'I hope that Epping provides inspiration to others.' Piers Riley-Smith, for Somani Hotels, said that 'disagreement with Government policy' did not justify an injunction. Tory leader Kemi Badenoch hailed the ruling as a 'victory for mums and dads'. She said of the migrants: 'They need to be moved out immediately. 'Bring back a proper deterrent and remove all illegal arrivals immediately, so towns like Epping never have to deal with this again.' In 2023, Great Yarmouth Borough Council won an injunction preventing hotels along its seafront from being used to house asylum seekers.
Scottish Sun
an hour ago
- Scottish Sun
How Rachel Reeves will RUIN British horse racing for millions of fans in her desperation to increase taxes
The Racing Tax will put the sport's British success story in grave danger NICK TIMOTHY How Rachel Reeves will RUIN British horse racing for millions of fans in her desperation to increase taxes Click to share on X/Twitter (Opens in new window) Click to share on Facebook (Opens in new window) AFTER increasing spending by EIGHT times more than she promised, Rachel Reeves has created a huge, £51billion black hole in the public finances – and she's going to make YOU pay the price for her failure. In the Budget this year, we are going to see record tax rises — and among the ideas in the Treasury is a new Racing Tax. Sign up for Scottish Sun newsletter Sign up 3 Horseracing supports rural communities and towns all over Britain Credit: Alamy 3 Chancellor Rachel Reeves has created a huge, £51billion black hole in the public finances Credit: Reuters 3 A bookmaker pictured at Royal Ascot in 2022 Credit: Getty Horseracing is the second-largest spectator sport, with five million people watching every year across 59 courses. It generates £4.1billion for the economy and backs 85,000 jobs. We have the best horses, the best trainers and four of the top ten races in the world. It supports rural communities and towns all over Britain, including West Suffolk, home to the Newmarket racecourses, which I'm proud to represent in Parliament. But the Racing Tax will put this British success story in grave danger. Right now, bookies pay a 15 per cent tax rate on racing, but Labour's plan to combine all online gambling taxes into a single rate could increase it to 21 per cent. 'Mindless free-for-all' Because racing is also subject to the Betting Levy, ministers would put racing at a competitive disadvantage against the most addictive kinds of online gaming. It could mean £330million of lost revenue for racing in just the first five years, and put 2,752 jobs at risk in the first year. This would lead to higher prices and less racing because of lost income. This proves Labour doesn't understand racing at all. Punters who follow the horses, on the whole, tend to be more selective and use their knowledge, judgment and skills when placing their bets at the bookies, on the course or online. British Horse Racing to Strike for the First Time: Industry Unites Against Betting Tax Hike Plus there are only so many races that you can put money on. But online gambling is a mindless free-for-all and incredibly addictive. There is simply no reason why horseracing should be treated in the same way. Yet, in the desperation to increase taxes, racing — and millions of racing fans — will suffer. Some assume racing has the cash to spare, but this is not true at all. While the industry is very valuable to the economy, its profit margins are tight for breeders and trainers. They invest a lot, but don't always see a return. We are already at risk of falling behind global competitors — such as France — because we are breeding fewer thoroughbred horses. But our racing industry isn't taking this lying down. On September 10, the day before the St Leger festival at Doncaster, no races will take place in Britain. Everyone in the industry knows the financing of horseracing needs reform. Nick Timothy The four race meetings at Lingfield Park, Carlisle, Uttoxeter and Kempton Park will be cancelled. The industry is taking a financial hit to prove its point. Usually, races are only cancelled because of awful weather, equine virus outbreaks or national crises. But the whole industry, from owners to trainers to jockeys, is standing together to protest against Labour's plans. It will be the first time in the sport's modern history that the industry will voluntarily refuse to hold races. Together, they will head to Westminster and make their voices heard. Everyone in the industry knows the financing of horseracing needs reform. Australia and France give horseracing a lot more government support through direct funding or betting taxes than us. Private investors have deeper pockets in the USA and Japan. Prize money is more modest in Britain — which means races in places like the Middle East might become more appealing to owners and trainers than races at home. But the industry keeps getting punished. No progress has been made on reforming the Horserace Betting Levy, which provides a third of the industry's income. 'Nobody has any fun' Affordability checks have been introduced for anyone betting more than £150 on racing within 30 days, driving customers away and costing £3billion in lost turnover in just two years. Labour ministers keep offering us warm words, but fail to deliver. The Racing Tax is the last straw. Opposing Labour's tax plans does not mean we don't want change. The Horserace Betting Levy can be improved by applying it to bookies' total turnover rather than just their profits. It could cover bets placed on overseas races so long as the bookies are based in Britain. The rate could be raised above ten per cent. This would be done to the benefit of the industry and punters alike. There is also more the sport can do to modernise and increase revenue. But the Racing Tax is classic Labour — faceless bureaucrats interfering with people's lives, undermining a successful industry and making sure nobody has any fun. They just don't understand how the economy works, which is why they are killing it with more tax and regulation. We should all stand with horseracing to protect this vital but endangered industry.
