First Published by: Wigan Today
UP to
50,000 Wiganers would be financially worse-off
Plans to scrap a Council Tax discount to single people are introduced. Wigan is said to be one
of a number of Labour authorities who want to abolish the Single Person’s Discount to
raise extra revenue to offset the effect of Government cuts. Almost 50,000
people who live alone across the borough are currently entitled to claim the 25
per cent allowance which works out at an average of £325 for a Band D property.
Opposition
Tory Coun James Grundy says that a family were warned by the council’s own
registrar staff that the allowance could go as they recorded the death of a
parent in the town hall. Nationally more than 7.7 million people receive the
relief and local authorities including Liverpool, Sheffield, Nottingham,
Burnley and South Tyneside have already suggested changes to end or reduce the
Single Person’s Allowance.
Wigan
has 34 per cent of households currently eligible for the Allowance which is,
say the council, “around the national average.” But Leader of the Council Lord
Smith said; “There is a new bill going through Parliament at the moment which
passes responsibility to councils to fund Council
Tax but will only provide 90 per cent of the cash. “Any
change will be the act of the Coalition Government.”
Council
Head of Citizens’ Support Anthony Mohammed said that the Government were in the
process of reforming the Council Tax
system and from next April local authorities will be responsible for designing
their own local Council Tax benefit
schemes for Council Tax payers on low
incomes. He
said: “While the government has indicated that it will be changing the rules
for some Council Tax discounts, they
have not indicated that they intend to change the rules for qualifying for a
single person discount.” But Councillor Grundy insisted that he had been
contacted by a worried constituent who learned about the alleged changes threat
to the allowance from a council officer as she officially registered the death
of her father, leaving the widow as another single person household.
He
attempted unsuccessfully to raise the matter at the latest full council
meeting. More than 40 per cent of the 10,000 people in his Lowton East
constituency currently qualify for the allowance, he pointed out. Councillor
Grundy said: “My constituent was warned that the council are thinking of
getting rid of the Single Person’s Discount, which she is rightly very alarmed
about. “At first I though this must be some misunderstanding or misinformation
because I hadn’t heard much of a whisper about it.
“But now I find that a
number of Labour councils, because they want to raise additional revenue, have
written to the Communities Secretary Eric Pickles
earlier this year asking to do precisely that, or certainly reduce it. “With
the number of widows
this would effect across Wigan, abolishing the Single Person’s Allowance would
be inflicting the real Granny tax. “If this was to go through I would consider
it nothing less than a tax on widows and utterly disgraceful.”
However: Councils missing out on millions due to Council Tax discounts
First Published by: Gloucestershire
TAX
breaks on empty properties and second homes cost Gloucestershire councils more
than £6 million last year. The estimated bill for providing exemptions and
discounts came to £6,306,000. Some local authorities give second homes a Council Tax discount, while owners of
empty properties may also not be liable for the full amount.
There
are exemptions for homes which are vacant for up to six months, undergoing
major repair work or have been repossessed. A property empty for longer than
six months may continue to qualify for a discount of up to 50 per cent. According
to figures published by the Department for Communities and Local Government,
the cost to Cheltenham for providing these discounts and exemptions is
£1,433,000. In the Cotswolds, it is £1,159,000 while Tewkesbury's figure stands
at £446,000.
The
three other districts lost out on more than £3 million between them due to the
discounts. The Government published proposals at the end of last year which
could see Council Tax imposed on
empty homes aimed at ending the 'scandal' of abandoned properties. Cheltenham
Borough Council gives a 10 per cent discount for empty homes, but does not give
any money off for long-term empty properties. Revenues manager Jayne Gilpin
said: "Cheltenham Borough Council exercised it's discretion to set the
minimum level of discount when legislation was introduced in April 2004.”The decision
was made in support of the council's strategy to reduce the number of empty
homes in the town."
Tewkesbury
Borough Council director of resources George Hill said: "Currently,
Tewkesbury Borough Council charges a 100 per cent Council Tax on empty and substantially
unfurnished properties where their statutory exemptions have expired. "Where
a second home is substantially unfurnished, we award a 10 per cent
discount." Ministers say the power to increase the levy – possibly by as
much as an extra 50 per cent – on long-term vacant properties would be another
'weapon' in a local authority's armoury in the battle to make better use of
housing, while giving a 'nudge' for owners of abandoned homes to bring them
back into use.
But
the Government insisted the so-called Empty Homes Premium would be
discretionary with "essential safeguards and exemptions" to ensure
vulnerable people, such as the elderly in long-term residential care, were not
penalised by the move. In Cheltenham 403 out of 1,726 (23 per cent) stood empty
for more than half a year, in Cotswolds 430 out of 1,139 (38 per cent), and in
Tewkesbury 321 out of 822 (39 per cent). Cotswold District Council was
unavailable for comment at the time of going to press.
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I support Council Tax Rebates in assisting home owners and tenants in getting a rebate on their over-paid Council Tax.