Lyons report

ePolitix.com Stakeholders comment on the Lyons report on local government finance.

Stakeholder Response: Commission for Rural Communities

To post a comment clickhere

"Sir Michael’s proposals to change Council Tax Benefit to a new ‘Council Tax Rebate’ and to radically improve take-up are very welcome.

"Concerns about people on low or fixed incomes who struggle to pay their council tax bills are widespread and particularly relate to older people.

"Given evidence that the take-up of all types of benefits is lower in many rural areas, as well as the older age profile of many rural communities, this proposed reform would, if implemented, be highly welcome to many rural people.

However, other welcome proposals are too cautious and tentative. After more than two years we wanted to see more confident proposals.

"We regret that the review did not address the financial structures supporting neighbourhood level or ‘first tier’ local government, such as Parish and Town Councils and including the 400 or so new Quality Parish Councils established over the last few years. The funding of parish and town councils in central government reviews continues to be ignored.

"We welcome the recommendation that the Government should consult on the taxation of second homes. But the housing and other pressures being faced in many rural communities are real and current. We want to see a firm proposal followed by action."

Stakeholder Response: London- First

To post a comment clickhere

Baroness Jo Valentine, chief executive of London First, said: "For London First, it’s a watershed moment. We are delighted. 

"London First helped Sir Michael’s team engage with business in London. 

"We pressed for supplementary business rates for local infrastructure investment, building on the proven Business Improvement District model, subject to acceptance from business.

"We also argued that local authorities should receive a large share of business rate receipts from new development.  In both cases, the Lyons report accepts our argument.

"So, Lyons has reported and delivered what we were asking for. 

"The last excuse for delaying Crossrail is removed.  Now we need to sort out the funding. 

"We are in favour of greater fiscal autonomy for London.

"But, though Red Ken has come a long way, he can’t speak for London’s business community! 

"We need a tripartite negotiation with government, the mayor and business to settle the precise funding arrangements for Crossrail."

Stakeholder Response: British Retail Consortium

To post a comment clickhere

BRC director general Kevin Hawkins said: "Local authorities are in the best position to respond to the needs of local people.

"Giving them more flexibility in how they maintain roads, remove refuse and clean community areas can be positive, but autonomy should not be extended to setting business rates.

"The localised business rate system was scrapped in 1990 because it wasn’t economically efficient or locally accountable.

"It created huge inconsistencies in rates and left businesses open to opportunistic and unpredictable rate hikes.

"We are pleased this review does not support a return to those bad old days. This would be wrong now and wrong in the future.

"The supplementary business levy, proposed in the Lyons review, would be administered by local authorities to fund transport or other infrastructure projects. The BRC is concerned how this would be applied in practice.

"Retailers fear local authorities would use the levy to fund projects they should be delivering from their existing budgets.

"A locally controlled levy could also damage the future development of Business Improvement Districts (BIDs).

"Retailers would be reluctant to make voluntary contributions to them if they could be forced to pay unpredictable and unaccountable supplementary levies on top."

"We are concerned by how a supplementary business levy would be applied and will closely examine the detail of the proposal.

"Retailers already make a massive contribution to local authorities through business rates.

"They expect local authorities to meet their obligations from that but there is a real danger this could result in yet more tax demands to pay for projects that should be coming from existing budgets.

"Businesses should not be expected to fork out extra cash for projects unless they are genuinely additional and the economic benefits can be clearly demonstrated."

 

Stakeholder Response: Help the Aged

To post a comment clickhere

Mervyn Kohler, head of public affairs at Help the Aged, said: "Help the Aged warmly welcomes the Lyons report and is pleased that he has drawn attention to the way in which soaring bills hit pensioners so hard.

"The stark fact is that council tax benefit is failing to reach almost half of all older people who are entitled to claim.

"Since the current government came to power, 11 per cent fewer pensioners claim the benefit - so reform is urgently needed to offset the problem of soaring Town Hall taxes.
 
"As with all means-tested benefits, eligible recipients need to know that the benefit exists, that they might be eligible, and what to do to apply for it.  

"The current system is inefficient and fails to reach many of those most in need.  With nearly £1.4bn left unclaimed in council tax benefit, the time for change is now. 
 
"The recommendation for taking the mystery out of council tax benefit, making the process more automatic, and therefore getting more money to pensioners, would be a significant step forward.  

"Council tax increases have tended to consistently outstrip published inflation rates and swallowed up the meagre rises in the basic state pension. 

"Older people across the country have been right to express outrage at this unfairness. 

"Today's proposals to improve the benefit safety net will command broad support."

 

Stakeholder Response: Age Concern

To post a comment clickhere

Gordon Lishman, Age Concern’s director general, said: "Lyons’ recognition that the council tax burden on pensioners must be eased and that a fairer system is needed is very welcome.

"Many pensioners will be disappointed that radical council tax reform is not on the cards, at least in the short-term, but Lyons is absolutely right to recommend that council tax benefit should be received automatically without having to claim.

"Despite steep hikes in council tax bills in recent years, council tax benefit is still the most unclaimed benefit of all, with up to 2.2 million older people missing out on up to £1.4bn each year.

"Lyons call for the savings limit to be increased1 is also good news for lower-income pensioners.

"But it will be interesting to see what impact the lower and higher bands have and whether, in practice, this makes for a fairer system.

"We agree with Lyons that the government should give local authorities more flexibility to respond to local needs  -  so long as older people do not miss out on essential services in their communities."

 

Stakeholder Response: Federation of Small Businesses

To post a comment clickhere

A spokesman said: "The FSB has welcomed the Lyons recommendation not to return to setting business rates at local level. 

"But we also have concerns that allowing a variation on top of the business rate and other variable service charges, will lead to even more complexity for businesses to deal with on top of already existing initiatives. 

"It is crucial that councils do use these powers to bring in more money from businesses rather than hit voters with higher council tax. 

"The FSB supports the government decision not to accept the proposal of a tourist tax and that the chancellor acknowledged the importance of accountability to businesses in any variation on top of business rates.

"We also welcomed the governments plans to implement one of the FSB’s recommendations in our Lyons Inquiry submission, suggesting that commercial property lying empty should not continue to be given generous business rate relief, as it leads to higher rents in areas with highest demand as well as stifling local economic growth."