With my emphasis added, Mark Tallentire writes:
Labour leaders at the North-East’s biggest
council are on a collision course with the Government, after guaranteeing
benefit payments against Coalition spending cuts. Tory ministers want town
halls to respond to Council Tax reforms, set to come into effect in April, by
cutting benefits for working-age claimants. But, despite facing unprecedented
cutbacks which could top £200m by 2018, Durham County Council today (Wednesday,
January 9) agreed to protect payments to its council tax benefits claimants at
current levels for the next 12 months.
Councillors were today warned the change could
make County Durham a haven for “benefit tourists”, but they pressed ahead with
the Local Council Tax Support Scheme (LCTSS), thought to be the first of its
kind in the region and possibly the country. Richard Bell, the Conservative
group leader, welcomed the move and slammed his own Government’s reforms,
saying he had never seen any such change quite so unwelcome. He told today’s
full council meeting at Durham’s County Hall that the LCTSS was a very
pragmatic approach, but added that he had severe doubts where it was
sustainable.
The measure will be paid for by cutting council
tax discounts on empty and second homes and charging 150 per cent council tax
on properties which have stood empty for more than two years. Some councils,
such as Hambleton, in North Yorkshire, have already reduced or axed such
council tax discounts. The LCTSS will come into effect in April and be reviewed
after the first year. Don McLure, the council’s corporate director of
resources, said “careful monitoring” would be needed, in case the number of
benefit claimants increased. But, he added, without the scheme some of the most
vulnerable people would see their annual council tax bills rise by £250.
The LCTSS is Durham’s response to Government
moves to localise council tax from April and cut the grants by which council
tax benefit is paid by ten per cent – which will leave Durham County Council
with a £4.6m shortfall. Councillor Bell asked today’s meeting whether the
scheme left the county vulnerable to so-called benefit tourism – with claimants
moving to Durham to get more benefits than offered elsewhere. “Is there a
danger of more people coming in to take advantage of it?” he asked; and called
on the council to work with its neighbours to combat the risk.
Alan Napier, the council’s deputy leader, said
the authority would take his concerns on board. Benefit tourism could increase
due to the “bedroom tax”, which will see council tax benefit reduced for people
living in council or housing association accommodation who have spare bedrooms.
Around 50,000 North-East households could be affected, with many families
forced to move out. But many more could be forced out of wealthier areas in the
south – potentially moving to the North, where living costs are cheaper,
particularly if benefit payments are higher.
County Durham has almost 5,000 empty homes, 1,800
of which are considered ‘long-term empty’. However, Monica Burns, North-East
manager for the National Housing Federation, said benefit tourism to County
Durham was “very unlikely”. “Moving is an upheaval. People have children in
schools, employment, family and friends,” she said. “It’s costly and the
accommodation isn’t available – there’s a huge shortage.” Ms Burns welcomed
Durham’s LCTSS, saying: “In times of austerity, people’s budgets are very
stretched and any help they can get from whatever source is very valuable. I
think it’s a very good decision.”
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