Action to cut Council Tax
Action to cut council tax for 5 million pensioners
Millions of pensioners will have their council tax bills slashed by half following a Conservatives win at the forthcoming general election.Michael Howard has promised that once restored to power his Party's first Budget will herald changes in the law to ensure that people aged 65 and over will benefit from savings in council tax payments - up to a maximum of £500 a year.
Experts calculate that 3.8 million household will qualify from the discounts - which will not be means tested. Read Michael Howard's full statementThe Conservative Leader's announcement is the first of the party's package of targeted tax cuts, benefiting more than five million older people, and to be funded by central government at an annual cost of £1.3 billion.
The money would be found from £4 billion worth of efficiency savings already earmarked by Shadow Chancellor Oliver Letwin.Launching the latest policy initiative at a press conference in central London, Mr Howard said: "People will face a clear choice at the election: Conservatives who will give pensioners dignity, security and respect by increasing the state pension and cutting their Council Tax or Mr Blair, who will forget them and raise their Council Tax."
He added: "Under Labour the Council Tax, the most painful of all Mr Blair's stealth taxes, will hit £2,000 for a typical family. It will be particularly hard for the older generation, people who live on fixed incomes. Many of them served our country at her greatest hour of need, preserving liberty, freedom and Britain's independence for future generations. Those who have given so much must surely be given their due. "The next Conservative Government will take action to relieve the Council Tax burden for millions of pensioners. I will give every home where the adults are sixty five and over a fifty per cent Council Tax discount up to a maximum of £500. This will ensure that five million pensioners have their Council Tax bills cut."
Mr Letwin declared: "Mr Blair claimed he had 'no plans to increase tax at all.' But council tax has soared by 70 per cent since 1997. It is right that we should use a third of the £4 billion available for tax cuts in our first Budget to help the vulnerable and to reverse one of Mr Blair's most unfair stealth taxes. We will halve council tax for millions of pensioners. Mr Blair would double it."Policy detail- Under the scheme, pensioners over 65 will self-certify on their council tax form, in the same manner as a single person household would register for the single person's discount. No group will be penalised with higher council tax bills in order to finance the discount.
- The discount will apply to pensioners 65 and over, in the same way as the existing higher income tax personal allowance for over 65s.- The tax cut will benefit households where one or more occupants is over 65, but where no adult is under 65. - The presence of people under 18 will not count against the eligibility of the household for the discount.- The discount will be on top of any existing discounts, for example, the single person's discount or the disabled person's discount, and be applied to the current net bill. - Council tax benefit recipients who currently pay some council tax will also receive a 50% reduction off their current net bill.-
Conservatives will protect existing benefits for pensioners, including the Pension Credit, winter fuel allowance, free prescriptions, concessionary travel and TV licences.DownloadsRead the newspaper advert from the Sunday Telegraph and Sunday Express (PDF format - requires Adobe Reader).Read Conservatives' manifesto chapter on policies for older people (PDF)Read the Action for Pensioners leaflet (PDF)
Millions of pensioners will have their council tax bills slashed by half following a Conservatives win at the forthcoming general election.Michael Howard has promised that once restored to power his Party's first Budget will herald changes in the law to ensure that people aged 65 and over will benefit from savings in council tax payments - up to a maximum of £500 a year.
Experts calculate that 3.8 million household will qualify from the discounts - which will not be means tested. Read Michael Howard's full statementThe Conservative Leader's announcement is the first of the party's package of targeted tax cuts, benefiting more than five million older people, and to be funded by central government at an annual cost of £1.3 billion.
The money would be found from £4 billion worth of efficiency savings already earmarked by Shadow Chancellor Oliver Letwin.Launching the latest policy initiative at a press conference in central London, Mr Howard said: "People will face a clear choice at the election: Conservatives who will give pensioners dignity, security and respect by increasing the state pension and cutting their Council Tax or Mr Blair, who will forget them and raise their Council Tax."
He added: "Under Labour the Council Tax, the most painful of all Mr Blair's stealth taxes, will hit £2,000 for a typical family. It will be particularly hard for the older generation, people who live on fixed incomes. Many of them served our country at her greatest hour of need, preserving liberty, freedom and Britain's independence for future generations. Those who have given so much must surely be given their due. "The next Conservative Government will take action to relieve the Council Tax burden for millions of pensioners. I will give every home where the adults are sixty five and over a fifty per cent Council Tax discount up to a maximum of £500. This will ensure that five million pensioners have their Council Tax bills cut."
Mr Letwin declared: "Mr Blair claimed he had 'no plans to increase tax at all.' But council tax has soared by 70 per cent since 1997. It is right that we should use a third of the £4 billion available for tax cuts in our first Budget to help the vulnerable and to reverse one of Mr Blair's most unfair stealth taxes. We will halve council tax for millions of pensioners. Mr Blair would double it."Policy detail- Under the scheme, pensioners over 65 will self-certify on their council tax form, in the same manner as a single person household would register for the single person's discount. No group will be penalised with higher council tax bills in order to finance the discount.
- The discount will apply to pensioners 65 and over, in the same way as the existing higher income tax personal allowance for over 65s.- The tax cut will benefit households where one or more occupants is over 65, but where no adult is under 65. - The presence of people under 18 will not count against the eligibility of the household for the discount.- The discount will be on top of any existing discounts, for example, the single person's discount or the disabled person's discount, and be applied to the current net bill. - Council tax benefit recipients who currently pay some council tax will also receive a 50% reduction off their current net bill.-
Conservatives will protect existing benefits for pensioners, including the Pension Credit, winter fuel allowance, free prescriptions, concessionary travel and TV licences.DownloadsRead the newspaper advert from the Sunday Telegraph and Sunday Express (PDF format - requires Adobe Reader).Read Conservatives' manifesto chapter on policies for older people (PDF)Read the Action for Pensioners leaflet (PDF)
posted by Carolyn @ 8:21 PM
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