New LGA website shows how much cash is locally raised and spent

LGA press release - 13 February 2008

A new website has been launched today by the Local Government Association which reveals on average for every one pound in tax that people in England have a vote over where it goes, six pounds is paid in national taxes.

The website – www.mymoneywenttowhitehall.com - provides a breakdown for every local council area of how much is spent per person on average on council tax compared to how much is spent on income tax. People can then sign up to an online petition which demands more say on the taxes paid.


The figures used just include income tax, but exclude VAT, fuel duty and other national taxes. In total, council tax is a mere twentieth of the national tax take.  

Chairman of the Local Government Association, Sir Simon Milton, said:

“All political parties are talking about giving more power to local people but a  vital  element  of  this  debate  must  be  about the level of control people have over the money they pay to fund these services.   

“New research shows that for every pound a taxpayer pays in council tax, where they have a local vote on what they pay and  how its spent, they send six pounds in income tax to Whitehall. Six times more money – but how many times less democratic  accountability to the taxpayer?  

“Every year, the amount of council tax people pay is the subject of powerful, real debate between citizens and their elected  representatives. And yet income tax is the subject of a great deal less controversy. 

“Is six to one really the right balance? We want people to be more conscious of just how little of the money spent on local  services is accountable to them. 

“Compared that 1 in 20 ratio with 1 to 2 for Sweden and Germany. Even France, which we traditionally think of as a highly centralised state has double the amount of taxation under local control that we do.

“As a sign of where power really lies in Britain, this is an important measure, and one which needs to shift onto a much  more equal footing if people are to be truly put first.” 

 

ENDS

Author: LGA Press Office

Contact: Richard Stokoe 020 7664 3225

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