How the Government Circumvents Its Own Laws to Hit You in the Pocket
The Hidden Loopholes That Let Authorities Drain Your Wallet
When the Rules Don’t Apply to Them
One of the most insidious trends in modern governance is the ability of authorities to bypass the very rules designed to protect the public. Laws, supposedly in place to ensure fairness and accountability, are increasingly being treated as obstacles rather than obligations. Nowhere is this clearer than in the latest scandal surrounding council tax hikes in the UK, where local authorities have found a way to increase taxes beyond the legal threshold—without the required democratic consent.
Under UK law, councils are limited in how much they can increase council tax without holding a local referendum. The standard cap is 5%, with 2% of that earmarked for social care. If a council wants to go beyond this, the law is clear: it must seek approval from the people it serves. But instead of trusting voters to decide whether they should shoulder the financial burden, councils are turning to the government for special exemptions, allowing them to impose tax hikes far beyond the legal limit—without a single ballot being cast.
This isn’t democracy. It’s rule by decree.
Mismanagement and the Price We Pay
The councils granted permission to exceed the cap—Bradford, Newham, Windsor and Maidenhead, Birmingham, Somerset, and Trafford—are not being forced into this position by circumstances beyond their control. They are victims of their own chronic mismanagement. Years of financial recklessness, bloated executive salaries, and wasteful spending have left them on the brink of bankruptcy. Now, instead of holding those responsible to account, they are passing the cost onto taxpayers—who are already struggling with rising living costs.
Birmingham, for instance, is in financial ruin after a series of disastrous investments and an equal pay scandal that could cost taxpayers up to £1.2 billion. Yet rather than cutting waste or reforming the broken system, the answer is to force residents to foot the bill. Windsor and Maidenhead wanted to raise council tax by a staggering 25%—an admission of failure if there ever was one. The government rejected this figure but still allowed a 9% increase. The message is clear: incompetence will be rewarded, and the public will pay the price.
Democracy in Name Only
The principle of local referenda was introduced to give people a say in how much tax they pay. It was a safeguard against excessive and unjustified increases, ensuring that councils remained accountable to the people they serve. But what use is a rule if the government can wave it away whenever it sees fit? This isn’t an isolated incident—it’s part of a broader pattern where laws that inconvenience those in power are treated as mere suggestions.
This same tactic is used time and again, whether it’s Parliament ignoring petition thresholds, governments signing international treaties without public consent, or councils imposing road restrictions under ‘temporary’ emergency powers that somehow never expire. The people’s voice is heard only when it aligns with what the authorities already want to do.
A Crisis Manufactured from Above
What makes this situation even more infuriating is that the government itself bears much of the blame for council insolvency. A decade of funding cuts has left councils struggling to cover even basic services, forcing them to rely on reserves and questionable investments. When those investments inevitably fail—because councils should never have been in the business of speculative property deals in the first place—residents are made to pay the price.
It’s a deliberate cycle: starve local authorities of funding, watch them collapse under financial strain, then ‘reluctantly’ approve tax hikes to cover the shortfall. In the end, councils are merely the collection agencies—the real power lies with Westminster, where decisions are made without the inconvenience of public approval.
What Needs to Change?
If democracy is to mean anything, rules must apply equally to everyone, including those in power. That means:
No more loopholes: If a referendum is required for tax increases above 5%, then that rule must be enforced without exceptions.
Accountability for failure: Councils that repeatedly mismanage funds should not be bailed out by taxpayers—executives must face legal consequences for negligence.
Local financial autonomy: Instead of being squeezed by Westminster and forced into reckless investments, councils should have stable and fair funding streams.
Public veto power: Beyond council tax, major financial decisions—such as large-scale borrowing or asset sales—should require direct public approval.
The government’s ability to override its own rules is a dangerous precedent. Today, it’s council tax. Tomorrow, it could be something far worse. If laws can be ignored when they are inconvenient, then they are not laws at all—they are merely tools of control.
It’s time to stop pretending we have a say when, in reality, we are just paying the bill.