Wales: Council Tax

Debate between Lord Wallace of Tankerness and Baroness Hollis of Heigham

Thursday 27th October 2011 Lords Chamber

[Lord Wallace of Tankerness]

My Lords, I can tell my noble friend that the amount was £22.6 million. I regret that I do not know how the Northern Ireland Assembly chooses to use it, but the same principle would apply: it must determine its own priorities and be accountable to the people of Northern Ireland for them.

[Baroness Hollis of Heigham]

My Lords, to return to the council tax freeze, why is it acceptable to freeze council tax in England and Scotland—and in Wales, if it chooses to spend it that way—to the tune of £800 million, so that every Member of this House has their council tax frozen, while, outside this House, the poorest will see their council tax benefit cut by 10 per cent?

[Lord Wallace of Tankerness]

My Lords, the Government indicated that this was an area of UK Government underspend which we were able to use to help support hard-working families with their council tax. I think that it has been widely welcomed that the council tax has been frozen in England; indeed, the Scottish Government had already decided to freeze it in Scotland. With the resources that are available, I think that it will be of benefit to a considerable number of households throughout Scotland and England. It is up to the Government of Wales to determine whether they will wish to follow that. Interestingly enough, in announcing the local government settlement, a Welsh Minister, Mr Carl Sargeant, indicated that local authorities in Wales would have to consider the balance between the need to sustain key services for their citizens’ benefit and the need to limit any financial pressure on hard-pressed households. Even devolution of local responsibility within Wales might lead to some places there getting a council tax freeze.