Latest news with #JohnO'Connell
Yahoo
27-05-2025
- Business
- Yahoo
Number of council tax dodgers soars to highest level since 2009
The number of households not paying their council tax has risen to 4.4 million, the highest amount in 14 years. Research by Debt Justice, a campaign group, found the figure increased by 40pc last year, from 3.2 million in 2023. It amounts to the largest number of households in council tax arrears since 2009, when the global financial crash wiped out families' savings. In total, taxpayers owed around £6bn to cash-strapped local authorities last year, up from £5.5bn the year prior. Councils are already facing a £2.3bn funding gap this year, according to the Local Government Association. Campaigners said the figures show local authorities should focus on the 'growing crisis' of tax arrears rather than increasing council tax. Nine in ten town halls increased the tax by the maximum 5pc this year, bringing the average cost of a Band D property to £2,280. And a nationwide clampdown on second home owners has left them being charged double council tax. The premium, which has been introduced by more than 200 councils, means the average bill on a second home is £3,672. Telegraph Money is campaigning for the levy to be abolished. John O'Connell, of lobby group the TaxPayers' Alliance said: 'With a record 4.4m people now in council tax debt, town hall bosses should be focusing on helping struggling households, not hammering second homeowners with punitive premiums. 'Hiking taxes on one group won't solve the growing crisis facing millions of others.' Earlier this year, The Telegraph revealed that Labour councils are chasing almost twice as much unpaid council tax as Conservative-led authorities. Our analysis showed councils are already chasing £4.4bn in unpaid taxes. Of this, more than £2.5bn was owed to councils run by Labour, compared to £673m owed to Tory councils. Debt Justice highlighted that people who miss a council tax payment are generally from the poorest households. The Government is currently considering a ban on the use of bailiffs to chase arrears and will publish a consultation later this year. Andrew Dixon, of campaign group Fairer Share, said: 'I am deeply concerned by Debt Justice's recent findings. This alarming increase underscores the urgent need to reform our outdated and regressive council tax system.' Councillor Adam Hug, housing spokesman for the LGA said: 'All councils make every effort to collect the that which is owing to them and 96 per cent of council tax is collected in the year in which it is due. 'When there are instances of unpaid council tax, it is often due to complex circumstances or people already facing hardship, and local authorities seek to work with individuals to work out a payment plan and avoid them lapsing into debt.' The Ministry for Housing, Communities and Local Government was contacted for comment. Broaden your horizons with award-winning British journalism. Try The Telegraph free for 1 month with unlimited access to our award-winning website, exclusive app, money-saving offers and more.
Yahoo
27-05-2025
- Business
- Yahoo
Number of council tax dodgers soars to highest level since 2009
The number of households not paying their council tax has risen to 4.4 million, the highest amount in 14 years. Research by Debt Justice, a campaign group, found the figure increased by 40pc last year, from 3.2 million in 2023. It amounts to the largest number of households in council tax arrears since 2009, when the global financial crash wiped out families' savings. In total, taxpayers owed around £6bn to cash-strapped local authorities last year, up from £5.5bn the year prior. Councils are already facing a £2.3bn funding gap this year, according to the Local Government Association. Campaigners said the figures show local authorities should focus on the 'growing crisis' of tax arrears rather than increasing council tax. Nine in ten town halls increased the tax by the maximum 5pc this year, bringing the average cost of a Band D property to £2,280. And a nationwide clampdown on second home owners has left them being charged double council tax. The premium, which has been introduced by more than 200 councils, means the average bill on a second home is £3,672. Telegraph Money is campaigning for the levy to be abolished. John O'Connell, of lobby group the TaxPayers' Alliance said: 'With a record 4.4m people now in council tax debt, town hall bosses should be focusing on helping struggling households, not hammering second homeowners with punitive premiums. 'Hiking taxes on one group won't solve the growing crisis facing millions of others.' Earlier this year, The Telegraph revealed that Labour councils are chasing almost twice as much unpaid council tax as Conservative-led authorities. Our analysis showed councils are already chasing £4.4bn in unpaid taxes. Of this, more than £2.5bn was owed to councils run by Labour, compared to £673m owed to Tory councils. Debt Justice highlighted that people who miss a council tax payment are generally from the poorest households. The Government is currently considering a ban on the use of bailiffs to chase arrears and will publish a consultation later this year. Andrew Dixon, of campaign group Fairer Share, said: 'I am deeply concerned by Debt Justice's recent findings. This alarming increase underscores the urgent need to reform our outdated and regressive council tax system.' Councillor Adam Hug, housing spokesman for the LGA said: 'All councils make every effort to collect the that which is owing to them and 96 per cent of council tax is collected in the year in which it is due. 'When there are instances of unpaid council tax, it is often due to complex circumstances or people already facing hardship, and local authorities seek to work with individuals to work out a payment plan and avoid them lapsing into debt.' The Ministry for Housing, Communities and Local Government was contacted for comment.
Yahoo
15-05-2025
- Business
- Yahoo
Eight in 10 councils did not assess impact of second homes tax raid
Eight in 10 councils charging the second homes premium failed to carry out impact assessments before introducing the policy, The Telegraph can reveal. Critics said it 'beggars belief' that town halls did not take into account the economic impact of the tax raid despite government guidance recommending they do so. More than 200 authorities in England brought in a 100pc council tax premium on second home owners from April 1. They were handed the power to do so by measures brought in by the previous Conservative government in 2023. Government documents released at the time said: 'Councils should carefully consider whether to charge a premium and make an assessment of possible impacts, including on the local population, its communities and the local economy.' However, just 27 (19pc) of the 145 local authorities that responded to a Freedom of Information request sent by the TaxPayers' Alliance said they had produced an impact assessment. They included: Camden, Cornwall, Durham and the Isle of Wight. Authorities in so-called 'holiday not-spots' such as Bradford, Coventry and Preston were among those who failed to carry out an assessment. Critics have repeatedly questioned why such areas, which have low proportions of second home owners, require the policy. Kevin Hollinrake, shadow housing minister, said: 'We know the Government hasn't carried out its own assessment of the impact of this tax. So it beggars belief that councils aren't doing so either. 'Local residents are already reeling from higher bills, lower income and record taxes because of this punishing Labour government. This will make things worse, not better.' The Government has repeatedly made clear that it is for 'councils to exercise their own judgement on whether to apply a premium'. The Telegraph is calling for the second home council tax surcharge to be slashed or abolished. So far, our campaign has revealed that as little as 9p in every £1 generated from the raid is being spent on affordable housing. The Telegraph also found that 55 authorities are locked in expensive disputes with second home owners who had appealed their bills. John O'Connell, of the TaxPayers' Alliance, said: 'These latest revelations only further demonstrate how disastrous this policy has been, with taxpayers footing the bill for avarice of England's town halls. 'When designing this policy, ministers anticipated it would only be used in certain cases, and would be accompanied by impact assessments. Yet this has not been the case and in most of the country councils have simply used it as a naked cash grab. 'Labour now has a unique opportunity to reverse the harm done by the previous government and scrap this premium for the next financial year.' It comes after the Ministry of Housing, Communities and Local Government (MHCLG), run by Angela Rayner, came under criticism for refusing to investigate the national impact of the raid. In response to a question posed by Mr Hollinrake, the department said it was up to individual councils to decide if the policy was 'effective'. An MHCLG spokesman said: 'It is for councils to exercise their own judgement on whether to apply a premium and they should consider our statutory guidance on impacts and exceptions.' A spokesman for the Local Government Association said the second homes raid is a way of 'encouraging owners to bring these properties back into permanent use'. He added: 'However, we remain clear that council tax itself has never been the solution to meeting the long-term pressures.' Broaden your horizons with award-winning British journalism. Try The Telegraph free for 1 month with unlimited access to our award-winning website, exclusive app, money-saving offers and more.
Yahoo
09-05-2025
- Business
- Yahoo
Labour-run council has ‘no excuse' for tax raid on its 33 second home owners
A Labour-run council introduced the second homes premium despite it affecting little more than 30 owners in its borough, The Telegraph can reveal. Figures show there were just 33 second homes on Rochdale's database when it agreed to hit owners with double council tax bills under new measures intended to ease housing shortages. They now face an annual average charge of £4,060, compared with £1,874 last year, according to Telegraph analysis. Local authorities in England were given the power to charge a 100pc council tax premium from April 1 under laws passed by the previous Conservative government. Unearthed government guidance shows that councils were told to only introduce the premium where 'appropriate' and 'take into account local circumstances'. Second homes accounted for just 0.04pc of Rochdale's housing stock, yet the council opted to bring in the surcharge as soon as it could. John O'Connell, chief executive of the TaxPayers' Alliance, said: 'These extortionate premiums were supposedly brought in to ensure that areas with high levels of second home ownership contributed to the local area. 'Even though that policy is wildly misguided, there is no excuse for councils to introduce it in areas with as little as just 33 second homes.' He added: 'It will be of little surprise to taxpayers that politicians have spied an opportunity for a cash grab, and seized it with both hands.' Back in 2023 when the topic of introducing the premium was raised, Rochdale council said there were 33 second homes in the borough. Implementing the surcharge was expected to raise £60,000 in additional income. The council told The Telegraph the number of second homes has since increased to 245 due to the opening of a new town centre development. The figure equates to 0.2pc of the borough's housing stock. The local authority is grappling with a housing shortage, but it has not been caused by the borough's small share of second home owners. There are 1,729 homes run by social housing associations which are standing empty, according to the latest government figures. Of these, around half are in such levels of disrepair that they are unable to be let out. The borough's high number of vacant homes comes as the council contends with a bulging housing waiting list of 9,000 people – one of the largest in the country. Councillor Carol Wardle, Rochdale's cabinet member for finance, said: 'In November 2023 when this premium was approved, it was in addition to the removal of discounts on empty properties and on top of other measures aimed at persuading owners to bring properties back into use rather than leaving them empty. 'Our approach is in line with the majority of other authorities in Greater Manchester and with services still under significant financial pressure we will put the premium to good use for the benefit of the local community.' Last year, the Ministry for Housing, Communities and Local Government said it was 'clear that it expects local councils to take into account local circumstances when determining where it is appropriate for a premium to apply'. Other councils with minimal second homes include Watford, which according to government data has just 38 second homes. It has agreed to implement the premium from April 2026. The findings come after The Telegraph launched a campaign to abolish the levy, which has been supported by several politicians. Dozens of readers have been in touch to complain of exorbitant bills being issued on inherited family homes or properties that are used every week for work. Telegraph analysis revealed local authorities are spending as little as 9p in every £1 generated from the raid on affordable housing, while other councils are sitting on hundreds of empty properties of their own. A Ministry for Housing, Communities and Local Government spokesman said: 'We are determined to fix the housing crisis we have inherited, but we recognise local leaders are best placed to understand the impacts that second homes can have on their areas, including driving up housing costs and damaging local services. 'That is why local councils are now able to add up to 100pc extra on the council tax bills of second homes, and it is for them to decide whether to implement this.' Broaden your horizons with award-winning British journalism. Try The Telegraph free for 1 month with unlimited access to our award-winning website, exclusive app, money-saving offers and more.
Telegraph
06-05-2025
- Business
- Telegraph
Retired NHS workers on six-figure pensions reaches record high
The number of retired NHS workers picking up six-figure pensions has reached a record high after increasing tenfold in the last decade. More than 3,000 former health service employees are being paid an annual pension of more than £100,000, up by 64pc compared with a year ago. Campaigners are now calling on Wes Streeting, the Health Secretary, to overhaul the 'unfunded and gold-plated' NHS pension scheme. The latest figures from the NHS Business Services Authority (NHSBSA) show the cost of its pensions is now at £12bn per year, with 1.1m former staff qualifying for the retirement payments. It means there are 47,267 former NHS staff being paid pensions worth more than £50,000 per year, up by 15pc from last year. Of those, 3,126 are picking up more than £100,000 this year. Last year, the figure stood at 1,909. A decade ago, the number of former NHS staff with a pension of £50,000 per year or more was just 19,886 and the number getting £100,000 or more was limited to just 285 people. In the private sector a person would need on average a pension pot of around £3m in order to be able to settle down with an inflation linked six-figure pension income. Government officials said part of the reason for the rapid rise in the numbers of people with the biggest pensions may be linked to higher inflation. This is because the pensions are index-linked, meaning the higher the inflation, the more the amount of pension increases the following year. Higher earning employees within the NHS – typically GPs and consultants – have to contribute 12.5pc of their earnings to be included in the pension scheme. But for NHS pensions there is no pool of contributions building up over time. The payments are made up from the salary deductions from people currently working in the NHS as well as additional payments to top the scheme up from central government. Critics of the NHS retirement scheme say its generosity creates a financial time bomb with 2.5m members expecting a pension from it in the future. John O'Connell, the chief executive of the TaxPayers' Alliance, a campaign group, said: 'There is now an extraordinary elite of NHS retirees who rake in massive pension payments every year, not paid out of retirement pots but instead out of the pockets of working taxpayers. 'That's because NHS employees, like in much of the public sector, get access to gold-plated and unfunded defined benefit schemes which are now almost absent in the private sector. 'As part of his plan to radically reform the NHS Wes Streeting should move all new staff onto fully-funded, defined contribution schemes.' A Department of Health and Social Care spokesman said: 'The NHS Pension Scheme provides generous retirement benefits for hard-working staff after a lifetime of service, and the scheme was comprehensively reformed in 2015 to ensure the costs are sustainable. 'Staff and employers are required to pay contributions that meet the full cost of the benefits being built up, with higher earners paying proportionately more than other members.'
