The biggest and newest stealth tax?

This week the BBC reported a calculation by the Local Government Association, from 100 draft council budgets, that council taxes are set to rise about 4% this year on average. One council is actually reducing the tax, a few are maintaining it, but at the other extreme several are bringing in a rate increase of 5%, which is the maximum permitted by the Government.

Why are they doing so? There is an increased immigrant presence in some areas, all are grappling with the more generous free travel for pensioners and the the disabled, there are pressures from social care budgets and more elderly people within communities. Government Departments are also shifting costs and responsibilities to councils.

Councillor Ken Thornber, Leader of Hampshire County Council, - one of those setting a tae increase of 5%, pleads, "We are being asked to do more and more every year by central government with less and less."

The table at the top, produced by the BBC, shows the increase every year in council taxes with changes in the Government inflation rate CPI.

It could have been more. What was also reported this week by the BBC was a report from the Audit Commission on charges levied by councils. Council Tax raised £22.4 billion in 2006-07, but it could have nearly 50% higher. Councils raised £10.8 billion in charges, of which £2.3 billion came from social services - residential care, homecare, daycare and meals, and £2 billion from education, meals, fees, etc., while £1.5 billion came from roads and transport services, including parking, public transport and congestion charges.

These charges have risen by 31% in five years, including parking and congestion charges by 75%, much more rapidly that council tax. (The charges on social services has risen very little.)

These charges seem to have been a calculated and deliberate intention of central government, and well and truly deserve the title "stealth tax" There are others in the pipeline - rubbish bins, for one, dressed up in the name of conservation.

One of the canons of taxation is that taxes should be transparent and obvious. We have a prime minister, who as chancellor broke that cannon over and over again. The cost is not just to us, but to democracy.