Rowen says Government forcing up council tax

Paul Rowen MP has warned that council tax in Rochdale could rocket over the next three years because of the government's decision to squeeze the cash given to councils.

For every pound spent by councils, on average, 75p of it comes from central government as part of a cash grant to help pay for local services. But the government's spending plans for the next three years, called the Comprehensive Spending Review, will slam on the brakes and massively restrict the money Whitehall based ministers give to councils.

Mr Rowen said: "Labour's spending plans are based on council tax rising at double the rate of inflation over the next three years. That net result of this for the people of Rochdale will be council tax increases for residents.

"Labour have no plans to reform council tax, the unfairest tax in the country. The Conservatives will also keep council tax. But Labour are making a bad situation worse by forcing up council tax by more than inflation.

"I know that my Lib Dem colleagues on the Council have worked hard to keep council tax as low as possible. Last year, we increased council tax by the smallest amount for a decade. This news must be hugely frustrating for all Councils, including Rochdale. In nearby, Oldham - the Labour Council are feeling the squeeze having to make millions of pounds worth of cuts. Councils are really feeling the squeeze.

"This is bad news in particular for the elderly residents of Rochdale who have fixed incomes or who saved all their lives and as a result are refused council tax benefit.

"Council tax is a rotten system and needs to be replaced with by a fair system based on ability to pay, not used to bail out Labour's Whitehall cash black hole."

Labour Parliamentary Candidate Simon Danczuk accused Paul Rowen of trying to hide the fact that Rochdale Council is giving residents poor value for money.

Mr Danczuk said the Chancellor's Comprehensive Spending Review announcement to substantially increase central government grants meant there should be no excuse for excessive council tax increases. He argued: "Paul Rowen is getting his excuses in early but he cannot hide the fact that his Liberal Democrat council are one of the worst in Britain for collecting council tax. Over £3.3million of council tax was not collected last year in Rochdale and the Audit Commission's most recent assessment says there is scope to achieve better value for money. I have witnessed this incompetence myself as I recently tried to pay my council tax and was told there was no one there to process my payment."