Reason why they get on your case for council tax!
- Thread starter itchy
- Start date
Caporegime
Soldato
I had to read that twice and then double check the website (no offence!). I suppose part of it may be population density but it seems out of all proportion. Massive amount. And of course when an area starts sinking into debt, educated / enterprising people are able to up sticks and move to somewhere else causing the region to sink even deeper into the hole.
I was also thinking there might be an element of this but didn't have any facts to hand. I would like to see some analysis on debt to party. It would have to be very general trends and there's the issue of regions changing hands over time that you have to allow for. But it would be interesting to see. It could be skewed by countryside leaning differently politcally than cities in general. Cities likely are under more pressure to borrow.
Associate
https://www.google.co.uk/amp/s/amp.ft.com/content/5dcd8fa6-d1e7-11e8-a9f2-7574db66bcd5
It’s the cheapest money out there. Many (if not all) of these councils will have big gaps in their long term pension obligations etc and are thinking longer term. Borrowing at say 2% and loaning/investing into hopefully low risk assets with returns > 2% is good business in anyone’s book and will prop up councils as government funding continues to be cut and there is pressure to not raise local taxes.
It’s the cheapest money out there. Many (if not all) of these councils will have big gaps in their long term pension obligations etc and are thinking longer term. Borrowing at say 2% and loaning/investing into hopefully low risk assets with returns > 2% is good business in anyone’s book and will prop up councils as government funding continues to be cut and there is pressure to not raise local taxes.
Soldato
That sums the situation up nicely. And they say that there is no slavery any more.
Ultimately, Government borrows from the people, the Banks are just the middle man who cream off a percentage and line their pockets for the privilege and at the peoples expense.
I have always pondered on the idea of raising money for government by means of some sort of direct bond. IE one is effectively compelled to finance bonds directly as part of general taxation, but you get the interest back directly as a subsequent annual tax rebate with an eventual lump sum when the bond ends.
My bean-counter mind however is not sufficiently convoluted to be able to figure out the accounting dynamics of this
Compulsory bond purchase with annual interest offset against income tax. I think the government would not be in favour. They'd effectively be subsidising your saving. They'd be lowering their tax revenues quite a bit so I don't think they'd like it? Proposal: Modify your idea to relate it to / overlap with pensions.
Soldato
I'm in South Oxfordshire, we also have none - http://lada.debtresistance.uk/local-authorities/south-oxfordshire/
Most of this debt is likely related to infrastructure spending (hence long term in nature).
How do you think you raise money for things like that?
Councils have also has their central government funding more than halved, whilst they can only raise our council tax by 3% each year.
Oh yeh and councils were told to become responsible for adult social care and told to fund it from council tax (although rather "generously" they were told they could break the 3% rule to do it).
Police funding has also been gradually become more a council's responsibility rather than central government.
https://www.theguardian.com/uk-news...ter-plans-for-council-tax-rise-to-fund-police
The central government has successfully balanced their budget by telling someone else to pay for everything.
We are moving towards more and more things being funded by council tax and business rates, all so that the government doesn't have to raise income tax.
How do you think you raise money for things like that?
Councils have also has their central government funding more than halved, whilst they can only raise our council tax by 3% each year.
Oh yeh and councils were told to become responsible for adult social care and told to fund it from council tax (although rather "generously" they were told they could break the 3% rule to do it).
Police funding has also been gradually become more a council's responsibility rather than central government.
https://www.theguardian.com/uk-news...ter-plans-for-council-tax-rise-to-fund-police
The central government has successfully balanced their budget by telling someone else to pay for everything.
We are moving towards more and more things being funded by council tax and business rates, all so that the government doesn't have to raise income tax.
Last edited:
Associate
- Joined
- 20 Mar 2014
- Posts
- 2,361
19 million here. Hope they spend it wisely.
Soldato
Or even a £18.2bn fund somewhere - £350m x 52 weeks 
Permabanned
wow...
Wakefield
Long-term debt
PWLB loans:
£119,043,000
Other public sector loans:
£0
Private sector (LOBO loans):
£50,000,000
Bonds and securities:
£0
Total long-term borrowing:
£169,043,000
I think this is worth a more comprehensive discussion
Another thread perhaps (Though under what title?)
OK Not compulsory then (Not everybody would be able to afford it after all)
But, say When I get to the bottom line on my Tax bill. I am given the option "Cash or Bond"
The interest rates will be provided along with other information and I can chose whether my payment just goes to revenue or as a long term bond.
After all, a scheme "Something" like this has to be a less expensive way for the government to borrow money. As I said, ultimately, when the government borrow money it borrows it from us. It HAS to be cheaper in the long run to do so directly rather than via intermediarys who will all want their cut but also because by borrowing directly the cash flow will remain within the UK economy rather than being exported to wherever the current "Investors" might be located.
It seems to me to be bonkers to borrow money from "Outsiders" and then tax the people in order to pay it back. Might as well just borrow from the people directly.
The overlap with pensions is also a very good suggestion, especially since it would make the investments a long term thing.
Associate
- Joined
- 5 Apr 2004
- Posts
- 1,199
Holy shitballs!
Leeds
Long-term debt
PWLB loans:
£887,039,000
Other public sector loans:
£35,000,000
Private sector (LOBO loans):
£445,000,000
Bonds and securities:
£0
Total long-term borrowing:
£1,367,039,000
Leeds
Long-term debt
PWLB loans:
£887,039,000
Other public sector loans:
£35,000,000
Private sector (LOBO loans):
£445,000,000
Bonds and securities:
£0
Total long-term borrowing:
£1,367,039,000
The search for my council on this website is rubbish as although my council is clearly shown in the table I cannot actually find it. The council in question is Edinburgh and so loves to borrow money for white elephants, I give you the trams fiasco.
Associate
This is a surprise.
Mendip
Long-term debt
PWLB loans:
£0
Other public sector loans:
£0
Private sector (LOBO loans):
£0
Bonds and securities:
£0
Total long-term borrowing:
£0
Mendip
Long-term debt
PWLB loans:
£0
Other public sector loans:
£0
Private sector (LOBO loans):
£0
Bonds and securities:
£0
Total long-term borrowing:
£0
Soldato
Very low maintenance costs, hills have.