Why are the LibDems doing this?

The Hidden Tax Behind Town Councils

There is a moment in politics when a decision stops looking like a mistake and starts looking like a strategy. Across Bournemouth, Poole and Broadstone, the Liberal Democrat administration has spent months telling residents that Town Councils are about “local empowerment”. More local voices. More local decision-making. More community control.

It sounds very noble. But once you look at how Town Councils actually work across the country, a different picture begins to emerge.

The Rule They Don’t Like Talking About

Here is the key fact rarely mentioned: Council Tax increases for principal councils are normally capped by law. If BCP Council wants to raise Council Tax beyond that limit, it must justify the increase and in many cases face a referendum.

Town Councils operate under a completely different rulebook.

Their taxes – known as a “precept” – have no legal cap at all.

That means once services are moved down to Town Councils, those councils can raise taxes by almost any amount they claim is necessary to fund them.

This Is Already Happening Across England

This isn’t a theoretical concern. It is already happening. Recent examples reported across England show just how dramatic these increases can be when services are passed down from larger councils:

• Wharton, Westmorland: 1,783% increase
• Whittingham Callaly & Alnham: 1,447% increase
• Whitelackington: 812% increase
• Mixbury: 595% increase
• Kingswood: 560% increase

 

How the System Works

When larger councils face financial pressure, they often transfer responsibility for services – such as public toilets, CCTV, park maintenance or local facilities – to parish or town councils. The responsibility disappears from the larger council’s books, but the cost does not disappear. It simply lands somewhere else.

Usually on the taxpayer.

Residents end up paying twice: once through their existing Council Tax, and again through a new Town Council precept designed to fund services that were quietly handed down.

Reform’s Position

This is why Reform opposed the creation of Town Councils in the first place. Not because we oppose local representation, but because the system can easily become a back door for higher taxation without proper accountability.

Now that these councils are going ahead, Reform councillors will take a clear approach. We will refuse attempts to offload services simply to move costs away from BCP Council’s balance sheet. We will challenge unnecessary spending and insist on transparency so residents are not quietly asked to pay more for the same services.

And we will continue to say something that should be obvious in any democracy:

Local government exists to serve residents – not to circumvent the rules or try to outmanoeuvre them.

On 7 May, voters will have their first chance to decide what kind of Town Councils they want. One that works for residents – or one that works the system.