Rayner hints at scrapping single occupant council tax discount
Rayner avoids commitment on single occupant council tax discount retention
Angela Rayner did not dismiss the possibility of eliminating the council tax exemption for single occupants yesterday. This discount reduces bills by 25% for individuals living alone, irrespective of their economic status. For someone in a Band D property, this means a saving of approximately £500 annually.
Councils are urging the Government to remove the discount and lift the five per cent cap on yearly council tax increases. The Local Government Association (LGA) is pressing the Chancellor to allow councils to cut the discount, claiming it is worth around £3 billion each year.
Housing Secretary Rayner did not commit to retaining the single person discount. In the Commons, former Conservative minister Graham Stuart highlighted its importance to pensioners, particularly those affected by the lack of the winter fuel allowance. He asked Rayner to guarantee the discount’s continuation, but she refrained from doing so. Rayner criticised the opposition for their economic management and emphasised the Government’s commitment to improving the financial situation for working people.
We inherited a Tory housing crisis.
Too few homes have been built. Ordinary people can’t get on the housing ladder.
There’s no time to waste. I’m calling on landowners, local authorities & housebuilders to help unblock sites & get shovels in the ground.https://t.co/Tkjv6nvOPC
— Angela Rayner (@AngelaRayner) August 30, 2024
Shadow housing, communities, and local government secretary Kemi Badenoch asked MPs if the Government planned to increase council tax or remove discounts like the single occupant discount. Rayner assured them that the Government had no such plans.
Currently, council tax can rise by a maximum of five per cent unless a local referendum approves a higher increase. Pete Marland, chairman of the LGA’s economy and resources board, argued that decisions on local service funding should rest with councils and their residents, not Whitehall. He noted that no other tax increase requires a referendum, suggesting that council tax should be treated similarly.
Marland pointed out that town halls face a financial deficit of £6 billion over the next two years just to maintain current service levels. He called for significant changes in funding to meet local service demands.
There is also speculation about a potential overhaul of council tax bands in the upcoming budget on October 30, which are currently based on property values from April 1991.
What Other Media Are Saying
- Yahoo Finance: The UK government has no plans to increase English council taxes, according to Angela Rayner, though she hasn’t ruled out cutting the discount.(read more)
- GB News reports that Angela Rayner, the Deputy Prime Minister, has refused to rule out axing the single-person council tax discount, which is worth 25%, despite assuring no plans to increase English council taxes.(read more)
Frequently Asked Questions
Here are some common questions asked about this news
Is the UK Government planning to scrap the single person council tax discount?
Angela Rayner refused to rule it out, so it’s uncertain.
How much does the single person discount save annually on council tax?
It saves around £500 a year for someone living alone in a band D property.
Why do councils want to remove the single person discount?
Councils claim it could provide around £3 billion a year to help with financial shortfalls.
Can council tax be increased by more than five per cent?
Only if local residents approve higher increases in a referendum.
Are there any plans to change council tax bands?
There’s speculation the Government might overhaul tax bands in the October 30 budget.
