Wednesday, 19 September 2012

Bankers directly benefit from increases to the poorest families council tax

As David Cameron's Tory-lead government continues to press ahead with draconian changes to council tax benefit that will result in the poorest families having to pay hundreds of pounds more each year tonight I can reveal that bankers will continue to benefit from council tax exemptions potentially worth millions of pounds.

At the same time as the government are allowing authorities to increase council tax on empty and second homes they have refused to alter the exemption allowed on repossessed properties.

Whilst technically when a house is repossessed the bill stays in the name of the mortgagee in reality banks take control.

As long as a 'mortgagee is in possession' an exemption from council tax is awarded. In 2011 over 36,000 homes were repossessed in the UK potentially meaning millions of council tax went unbilled and unpaid by local authorities to the direct benefit of bankers.

It seems totally inequitable that whilst hard pressed families already living on the bread line are faced with massive tax increases an arguably immoral exemption continues to be given for the benefit of bankers whose own business ethics have rightly been questioned in recent years.

But what more do you expect of a government who gives £40,000 tax breaks to millionaires?

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