- Reeves prioritizes planning system reform
- Labour won’t bail out councils
- Criticizes government’s non-dom tax stance
When queried whether she would permit local governments to increase taxes or advise them to perish or swim, the shadow chancellor responded, “I have no qualms regarding the magnitude of the challenge I will assume upon assuming the role later this year, and I must be forthright with the public.”
Insolvent councils will not be bailed out by Labour, according to the shadow chancellor.
I’m not going to be able to fix all the problems straightaway,” Reeves admitted.
Her remarks come after Birmingham City Council was forced to pay £760 million to resolve equal pay claims, which essentially caused the council to declare bankruptcy.
As a response, the council authorized £300 million in cuts during the same period and a 21% increase in council tax over the following two years.
When asked whether she would provide financial assistance to the councils, permit them to increase taxes, or advise them to perish or swim, Ms. Reeves responded, “I have no qualms about the magnitude of the challenge that will befall me if I am appointed chancellor later this year; I must be forthright with the public.”
“My priority is reforming the planning system so that Britain can once again be constructed,” she continued.
By implementing the measures above, tax revenue will be generated, enabling a recommitment to public service investments. None of them are shortcuts. “That is precisely how it works.”
Eliminating the non-dom tax status, according to Ms. Reeves, is “a complete disgrace for this government.”
“They use the final budget of this parliament in fourteen years to close a non-domiciliary tax loophole that has been known to the public for years,” she continued.
In effect, additional councils have declared bankruptcy.
A number of additional borough councils have essentially initiated bankruptcy proceedings, as evidenced by the issuance of section 114 notices by Hackney Council in 2000 and Northamptonshire County Council in 2018.
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In November 2022, Croydon Council issued its third section 114 notice in the preceding two years. Thurrock, Essex, implemented a similar course of action in December 2022 after encountering challenges associated with procuring substantial loans for solar energy investments.
Woking issued section 114 in June 2023 in response to an “severe financial shortfall caused by its historic investment strategy, which resulted in unaffordable borrowing, insufficient steps to repay that borrowing, and high values of irrecoverable loans,” according to the company.
