There has been significant backlash as Angela Rayner declines to rule out the possibility of eliminating the council tax exemption for individuals living alone. Her stance has provoked anger among those concerned about the potential impact on single-person households.
Yesterday, Angela Rayner declined to rule out the possibility of abolishing the council tax exemption for individuals living alone. Currently, the single person discount provides a 25% reduction on council tax bills for those who live alone, regardless of their financial situation. This discount saves a person residing in a band D property approximately £500 annually on their council tax bill.
Councils are reportedly urging the Government to eliminate the single person discount and lift the 5% cap on annual council tax increases. The Local Government Association (LGA) has called on the Chancellor to grant councils the authority to remove the discount, which they estimate costs approximately £3 billion annually.
Yesterday, Housing Secretary Angela Rayner declined to commit to maintaining the single person discount. In the Commons, Conservative former minister Graham Stuart emphasized the importance of the discount for pensioners, especially given the absence of the winter fuel allowance, and urged Rayner to guarantee that the discount would not be removed.
Rayner responded by expressing astonishment that members of the opposition, who she accused of damaging the economy, were now suggesting that her government aimed to raise taxes. She emphasized the government’s focus on improving the financial situation of working people.
Shadow Housing, Communities, and Local Government Secretary Kemi Badenoch later questioned Rayner about reports of lobbying to increase council tax and remove discounts. Rayner assured the House that the government had no plans to increase council tax, as they had promised before the election.
Currently, council tax can only be increased by a maximum of 5% unless higher increases are approved by local residents through a referendum. Pete Marland, chairman of the LGA’s economy and resources board, argued that decisions about funding local services should be made by councils and their residents, not by central government.
Pete Marland emphasized that no other tax increase requires a referendum, as other taxes are within the mandate of the elected government. He argued that council tax should be treated similarly. He highlighted that local authorities face a £6 billion shortfall over the next two years to maintain current services without further cuts. Marland called for a significant change in funding to better meet the needs of local communities.
Additionally, there is speculation that the Government might consider overhauling council tax bands in the upcoming budget on October 30. The current bands are based on property values from April 1991.
