Council Tax

Baroness Scott of Bybrook Excerpts

Monday 3rd February 2025 Lords Chamber

[Baroness Taylor of Stevenage (Lab)]

My noble friend makes a good point about the link between universal credit and council tax, but there is significant support. All local authorities are required to run local council tax support schemes, which provide council tax reductions for those on low incomes. Some 3.7 million households currently receive this support. There is also a range of discounts and exemptions that reflect personal circumstances. I urge anyone struggling to pay their council tax to contact their local council, because they might be missing out on some of the benefits that are available.

[Baroness Scott of Bybrook (Con)]

My Lords, last year, Labour-run Birmingham City Council imposed a 21% council tax hike on residents over a two-year period after it mismanaged its finances. This year, Labour-run Bradford Council is proposing a 15% hike. Can the Minister explain why it is Labour-run councils that are imposing some of the worst council tax increases on local people this year?

[Baroness Taylor of Stevenage (Lab)]

It is not only Labour-run councils that apply for exceptional financial support. My honourable friend the Minister will be making a Statement later today about which councils have been successful in gaining that exceptional financial support. There are any number of reasons why councils need to apply for that. It is not necessarily poor financial management: it can be the circumstances they find themselves in, particularly those areas that have low funding because the fair funding was not looked after.