Council Tax

Lord Tunnicliffe Excerpts

Wednesday 15th September 2021 Lords Chamber

[Viscount Younger of Leckie (Con)]

I certainly recognise the wonderful work done. Each council provides council tax reduction schemes for working-age taxpayers. Councils have choices, as they should, about how to design their scheme, reflecting local circumstances. There is a variation in how councils deliver these schemes. For example, some councils offer 100% reductions on their criteria, while others request a contribution from everyone irrespective of income and savings.

[Lord Tunnicliffe (Lab)]

My Lords, earlier this year the Government hiked the amount by which local authorities can increase council tax bills without holding a referendum. This hit family incomes at a time when the Treasury should have been doing everything possible to encourage local spending and stimulate economic growth. With the autumn Budget and the 2021 spending review due shortly, does the Treasury accept the need to properly fund local government rather than placing an increasing burden on working people?

[Viscount Younger of Leckie (Con)]

I certainly cannot second-guess what the spending review would have in it, but I reiterate that local authorities have the flexibility to increase council tax bills in 2021-22 by up to 2%, as the noble Lord will know, without a referendum, and up to 3% for the adult social care precept for social care authorities. In addition, the police and crime commissioners can raise their bills by £15 per person per year.