The Policy Blender

Sir Michael Lyons, the Director of the Institute of Local Government Studies who has been charged by the Government to run an inquiry into local government finance, is considering a scheme that would allow pensioners to defer their council tax payments until they die, the BBC reports.

The proposal is in response to the unpopularity of council tax in many areas, particularly amongst the elderly. In areas where council tax is at its highest, collection rates are lowest, with the local authorities - who have responsibility for setting the rate - receiving handouts from the government to make up for the deficit.


Prescott: props up failing authorities

The deferment, which is in effect a Death Tax, amounts to nothing more than grave robbery by a government that has run out of money and ideas. Bereaved relatives already suffer the symbolic destruction of the estates of their loved ones, as 40% is ceded to state under Capital Gains Tax - literally money for nothing for the Chancellor. These deferment proposals merely continue the trend of government disincentives to save and hold capital under New Labour.

With pensions subject to an annual raid since 1999 that has now reached £5bn, Death Taxes, Capital Gains Tax, constant rises in National Insurance, the spread of MRSA, poor state provision for the elderly and the prospect of Cherie standing for parliament at the next election, there has never been a better time to die young and broke in Blair's Britain.

Posted by Ben on Tuesday, August 16, 2005 at 5:03 pm | Permalink