Lord Whitty
Main Page: Lord Whitty (Labour - Life peer)Department Debates - View all Lord Whitty's debates with the HM Treasury
(1 day, 19 hours ago)
Lords ChamberA working person is someone who goes out to work. The Government have pledged not to increase taxes on working people. We stand by that, which is why we are not increasing their income tax, national insurance contributions or VAT.
My Lords, the concentration during this Question has been on national finance and national taxation, but the real crisis is in the finance of local authorities of all descriptions in all parts of the country, and under all political control. Do the Government intend to look at the basis of financing local authorities so that we can introduce a robust scheme before the end of this Parliament?
I am grateful to my noble friend for his question. A council tax cap of 5% was introduced by the previous Government. Councils do not have to increase council tax by 5%, but under the rules they cannot increase it by more than 5% without a local referendum. That remains the position.