Council Tax: Low-income Taxpayers

Baroness Armstrong of Hill Top Excerpts

Monday 9th February 2015 Lords Chamber

[Lord Ahmad of Wimbledon]

My noble friend is quite right that this is about ensuring that local authorities are empowered. We have also taken steps to ensure that we have released a greater number of empty homes. There are additional measures that councils can take. For example, I have responsibility for countering fraud, where a bigger effort is being made. Councils currently lose £2.1 billion from fraud and error. There are council reserves of £21.4 billion. It is really for local authorities to decide their priority and to initiate schemes appropriately.

[Baroness Armstrong of Hill Top (Lab)]

My Lords, does the Minister recognise that there are some areas of the country where incomes are now so low that even the market is abandoning some services in smaller towns? In those areas, the public sector has a particular responsibility. Indeed, the social mobility task force, which was set up by his Government, is saying that it is people in work with the lowest incomes who will be the biggest crisis for this country in the next five years. Will the Minister recognise that the level of cuts on local authorities is making it difficult for those local authorities to help to protect these people who the market has already abandoned?