Thousands of Birmingham workers too poor to pay their council tax
In May Birmingham Worker reported on the crisis in council tax and its anti-working class character hitting many of the poorest in our cities. A publication by the Institute for Public Policy Research (IPPR) into council tax inequality focused on London but taking into account some statistical evidence for the whole of Britain concluded that council tax was beginning to look a lot like the ill-fated Poll Tax.
The Birmingham Mail on 2 July carried the story that council tax arrears in Birmingham have soared to their highest levels on record with workers in Birmingham owing a total of £115.6million in outstanding council tax. Non-payments in 2018/19 totalled £21.4million – an overall collection rate of 94.4%.
This was a rise from £111million in 2017/18, and up by almost a fifth compared to £98.5million in 2012/13 (the figures are cumulative and include arrears that stretch back many years).
The UK is ranked by the OECD as having, after France, the greatest reliance on property taxation of all OECD country respondents as a proportion of GDP. For 2017, property taxes accounted for around 4.2 per cent of GDP, more than twice the OECD average.
Today’s system of council tax leaves those living in the lowest-value homes paying a higher proportion of council tax with regard to property value, than those living in the highest value homes. This is particularly acute in London where property investment has taken house price prices to ludicrous levels. The poorest Londoners pay 8.1% of household income in council tax, whilst those in the top income decile contribute just 1.3% of their declared earnings.
No tinkering with the present system of taxation will be enough to stop the steady slide of hundreds of thousands of workers and middle classes into absolute destitution and misery. The crisis of overproduction, its consequent lay-offs and redundancies destroy the purchasing power of the masses who are also crushed under the weight of rising prices and taxation which they can no longer afford. Millions of workers today are a pay cheque away from ruination. Raising taxation of empty homes in London does nothing to undermine the financial power of the landlord and capitalist class, it does nothing to alleviate the underlying cause of the people’s misery – capitalism. Only under socialism, where the private ownership of the land by a tiny few is replaced with a socialist system of land ownership and taxation, where the recurrent crisis of capitalism is done away with and replaced by planned production can the working man and woman finally find themselves liberated.
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