SWINDON residents might rue the day if proposed plans regarding the new university ear-marked for Coate Water finally materialise.
Householders in university towns are paying an extra £80m a year in council tax to subsidise students who are exempt from the charge.
When the council tax system was set up, ministers agreed to compensate local authorities for the income they lost through this student exemption.
However, a flaw has been uncovered in the system which means that Whitehall persistently undercounts student households.
As a result, compensation pay-outs are too small, forcing local town halls to increase the burden on other residents.
In Nottingham City for example, the worst hit area, more than 1,000 student households were missed in last year's count, costing the council more than £1.3m, this financial year.
As a result, the average household pays an extra £19 a year while those living in the most expensive properties pay an extra £59. Status does not come cheap.
J ADAMS Freshbrook, Swindon
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