Rateable values, why do they still use these?

dellfanatic

OK, apart from the obvious reason, why do they use rateable values for determining water rates?

These were done in 1989 before the water industry was stupidly privatised and I don't see why the government doesn't stop this practise. It's unfair and it's only designed to screw us even more.

I think this site should seriously consider a petition to get this changed. The only people gaining are the shareholders of the water companies :rolleyes:

Cardew

I think we would all agree that use of RV for determining water bills is a complete nonsense.

Even prior to 1989 when 'local taxes' were determined by a property's RV it was a nonsense as a huge old mansion could have a lower RV than a small semi.

I believe that the original privatisation bill said there would be a 10 year period to come up with an alternative method for assessing water charges for unmetered properties; they didn't!

I would take issue with you on one point about the shareholders gaining from the RV system. It is largely irrelevant to the water companies how they raise their revenue. Their income and profit margins are still controlled by the Regulator. So losing some income from unmetered customers would be compensated for by raising charges for metered customers(robbing Peter to pay Paul) They have no option but to fit a meter if requested.

Water companies inherited the RV system and have no power to change it. So in that sense they are not the culprits here.

There is no reason now for anyone to their water charges based on the RV of their property if they don't wish to have that method. They can have a meter fitted free, or if that isn't practical, they can get an assessed charge instead.

Also there are some people with a low RV and/or high consumption who are far better off without a meter and if the RV system is scrapped and they are forced to get a meter(or assessed charge) there will be howls of protest.

dellfanatic

If scrapping RV, why the switch to meters? Why not simply use the council tax banding system? That seems much fairer.

moonrakerz

dellfanatic wrote: »

If scrapping RV, why the switch to meters? Why not simply use the council tax banding system? That seems much fairer.

To be honest, the Council Tax is little more than the old rating system under a different name.
If I remember correctly, the rateable value was based on the rent a property might get, Council tax is on the value. What's the difference ?

Bring back the Poll Tax, at least it was fair !

Cardew

dellfanatic wrote: »

If scrapping RV, why the switch to meters? Why not simply use the council tax banding system? That seems much fairer.

Why fairer?

Surely like any other utility(e.g. gas/electric/phone) water charges should be based on consumption.

Using Council tax Banding as a basis for water charges, A whole bunch of people(with several earning) living in in a low rated property would pay less than a, say, widow, living alone in a higher rated property.

melbury

Cardew wrote: »

Why fairer?

Surely like any other utility(e.g. gas/electric/phone) water charges should be based on consumption.

Using Council tax Banding as a basis for water charges, A whole bunch of people(with several earning) living in in a low rated property would pay less than a, say, widow, living alone in a higher rated property.

I agree, using Council Tax banding would be totally unfair.

People should pay for what they use as with gas and electricity. Being metered at least makes you more responsible about how much water you use, whereas people who pay based on RV don't really care because it doesn't make any difference to the amount they pay. I know this for a fact because my neighbours on either side pay based on RV and use/waste probably six times more water than we do even though their water bills are about the same as ours.

It has to come - meters for all!

moonrakerz

Cardew wrote: »

Using Council tax Banding as a basis for water charges, A whole bunch of people(with several earning) living in in a low rated property would pay less than a, say, widow, living alone in a higher rated property.

That's why I said bring back the Poll Tax !