London borough fears Poll Tax return

Published by 24publishing for 24dash.com in Housing and also in Central Government, Communities, Local Government

The London borough of Camden fears the government's council tax benefit reform is like going back to the dark days of the Poll Tax – which saw rioting across British towns and cities.

Camden council says that plans to cut expenditure by 10% - and give the grant to councils to administer, protecting the elderly from cuts – will force it to seek a minimum contribution from working-age households.

The Labour-run authority's preferred approach, out for consultation this month, is a scheme reducing the amount received by households by a 'flat rate' - meaning that the ‘no minimum contribution’ principle established in 1992 would end.

This would see every household with a resident of working age have to pay something towards their council tax. 

Camden says that with pensioners protected from cuts, the council has to decide which people of working age should continue to get help to pay their council tax bills and how much this should be.

Its cabinet member for finance, Cllr Theo Blackwell, said the changes “undermine a fundamental principle which distinguished council tax from the previous Community Charge - or Poll Tax”.  

Subject to the outcome of the consultation process Camden said everyone could get £3 less support a week, meaning that everyone would pay at least £156 a year towards their council tax bill.

The council estimates that over 16,000 low-income households in Camden could face rises in their council tax from 1 April 2013 due to changes.

Cllr Blackwell added: “It also undermines support for low income households at a time when inner London cost of living pressures are rising.  The impact of this will be widespread on families already hard-pressed.  Camden is launching a detailed three month consultation on how the minimise the impact of this change and help reduce this new burden on households.”

The Government has said it wants the local schemes to provide support and work incentives for those out of employment, despite a large number of claimants being in full and part-time work.

The reforms, say ministers, will also give councils stronger incentives to tackle benefit error and fraud which are currently estimated to cost councils around £200 million a year.

It has also argued that by giving councils capacity to change their current discounts and exemptions for empty and second homes - and through the local retention of business rates - local authorities will be able to offset the reduction in expenditure.