Janice R. Andrews
Angela Rayner, the UK’s Housing Secretary, has caused a stir by refusing to say for sure that the single-person council tax discount will not be taken away. At the moment, this exemption cuts people living alone’s council tax bills by 25%, which helps a lot with money, especially for seniors and people with low incomes. With this rate, someone living alone in a Band D home, for example, saves about £500 a year.
Possible Effects on Single Occupants
Many people, like retirees and people on fixed incomes, depend on the single-person rate to help them budget. If this exemption is taken away, single-occupancy council tax payments could go up a lot, making it hard for some of the most needy people in society to pay their bills. This possible loss of the discount has both lawmakers and people worried, especially since the cost of living is going up.
What the Local Government Association Says
The Local Government Association (LGA) wants the government to give local councils more control over council tax rates, so they can do things like get rid of the discount for single people. The LGA says that towns should be able to set their own tax policies without Whitehall getting in the way, especially since there will soon be a shortage of money. Pete Marland, who is the head of the LGA’s economy and resources board, says that over the next two years, towns will need to find £6 billion in extra money just to keep providing the same level of service.
“Boards and their residents, not Whitehall,” Marland said. “Should decide how local services are paid for.” There is no need for a vote on any other tax rise because all other taxes are seen as being within the power of the elected government. The same should be true for the local tax. The LGA agrees with this statement. They believe that local governments should have more power over their budgets, such as the ability to raise council tax rates above the current 5% limit without having to hold a public vote.
Reactions in politics
During a heated discussion in the House of Commons, Graham Stuart, a former Conservative minister, stressed how important the single-person discount is for seniors, who are already having a hard time because they don’t get the winter fuel subsidy. Stuart told Angela Rayner to comfort people by promising that the deal would stay in place. But Rayner didn’t promise to keep the exemption. Instead, he criticized the opposition for how they were treating the economy and taxes.
Shadow secretary for housing, communities, and local government Kemi Badenoch also asked Rayner about the government’s plans, hoping to get reassurance that the council tax would not go up or savings would not be taken away. Rayner confirmed that the government has no plans to raise council tax, but she wouldn’t say anything about the specific problem of the single-person discount, which has led to gossip and worry among locals.
Possible Changes to the Council Tax
People are still guessing that the government might change the council tax scheme, which includes the bands that are currently based on how much a house was worth in April 1991. Such changes could cause homes to be reassessed, which could mean that many people have to pay more in taxes.
The future of the single-person council tax discount is still being talked about, which makes many single people and retirees worried about how it might affect their finances. When the government releases its budget on October 30, it might make things clearer on this problem. Until then, though, the fight over local taxes and government control is still a hot topic in UK politics.
