A BBC report states that Bristol is missing £2.6 million in council tax,
with councillor Caroline Gooch telling the news site that university cities
were being “over-burdened” due to student exemptions.
Council tax pays for and feeds money into many essential services such as
the police and fire service, rubbish collection, and schools. Many students
benefit from these services despite not contributing to council tax
payments. As a result, non-university cities and rural areas don’t seem to
be facing the same issues as Bristol and other densely student-populated
places.
While the total cost of students not paying council tax in Bristol is
unclear, this year it increased by £2.6m,
the Local Democracy Service reports
.
Benefits of being a student city
However, having students in the city has proven to help businesses. The
Guardian says, “Students are a huge boost to a city’s economy. Loans are
there to be spent, and millions of pounds are poured into cafes,
restaurants, bars, pubs, clubs and shops in university cities every year.
Many of these businesses are also staffed by students.”
A spokesperson from the University of the West of England told the BBC,
“UWE Bristol and its students contribute more than £400m to the local
economy each year, supporting over 3,500 jobs.”
The Tab conducted a study that asked recent graduates where they decided to
move after graduating and “it found that over a third (36 per cent) of
students stayed and worked in the city they went to uni.” Meaning that
students continue to help improve the economy even after graduating,
especially considering that they would be paying council tax for the area
they live in as an alumni.
Where is the balance?
According to the National Union of Students UK, 69% of students work part
time on top of their studies. Of that number, almost one in five work more
than 20 hours per week alongside their studies. This suggests that if
council tax exemptions were to be lifted for students, then this could
cause further pressure on those in full-time higher education.
Studying in Bristol, Anna Luna, says “I think it’s a difficult issue
because on one hand, rent is already extortionate and way beyond student
means at the moment. Maintenance loans no longer cover rent for many
students, forcing many to work long hours alongside their studies. If
council tax was added to this, it would make it even worse.”
However, Anna also recognised the issue that tax council debt was causing
in her city – “for student flats which are often quite numerous, with many
housing between 7-10 people, the decrease of bin collection services has
led to a significant pile up of rubbish and nowhere to put it.”
So how can there be a balance between ensuring an affordable cost of living
for students and guaranteeing that university cities don’t become
overburdened?
Councillor Caroline Gooch suggested to the BBC that “the government should
implement a subsidy scheme for local authorities with high student
populations.” Plans of this coming into action are yet to emerge.
The next year ahead
As the
student housing crisis looms,
the Renters’ Rights Bill could cause big challenges for students in
securing suitable accommodation. As a result, student numbers in Bristol
and across the country could decrease, possibly eradicating the council tax
issue but also the benefits that come with being a student city too.
