Leader warns of impact of single person council tax discount

According to the latest figures from the Department for Levelling Up, Housing and Communities, 192,010 people in the Hampshire local authority area, excluding the three unitary authorities of Portsmouth, Southampton and the Isle of Wight, received a 25 per cent discount on their council tax in 2023.

Data showed that 8.39 million homes in England received the discount in 2023, which means that over a third (34 per cent) of all households in the country received it.

The discount reduces bills by 25 per cent for taxpayers who are the sole person over the age of 18 in their property, regardless of their financial circumstances. It can save a person in an average home around £500 a year on their council tax bill.

Deputy Prime Minister Angela Rayner refused to say if the government would consider cutting the benefit, which currently reduces council tax bills by 25 per cent, when questioned in the Commons on Monday (September 2).

Leader of HCC, Cllr Nick Adams-King (Image: HCC) Regarding the topic, Hampshire County Council leader Councillor Nick Adams-King said councils have pressed the government for fundamental changes to the way local councils are funded and to have more control over their council tax since that is the “have of raising additional revenue locally”.

Cllr Adams-King said: “For a long time, we have pressed the government for fundamental changes to the way local government is funded and for councils to have more control over setting their own council tax – as the government has capped increases at 5 per cent before a referendum must take place.

“Council tax is the only way that councils have of raising additional revenue locally. Each 1 per cnet provides an additional £8m revenue for the county council.

“We understand there is speculation about changes to council tax reductions, this has not yet been confirmed and would be a national policy change introduced by the Government that all of local government would be required to implement if agreed.”

He added that if the government ruled out the measure, it would have to be “very careful” about possible impacts on residents and the most vulnerable since “ those receiving council tax discounts are also those who would be affected by the Government’s withdrawal of the winter fuel allowance.

“When considering our council tax policy for next year, we must inevitably consider the enormous pressure on our finances as we meet our commitment to the most vulnerable residents of the county.

“The decision to change the council tax system is a matter for central government to determine, but it is likely that some of those receiving council tax discounts are also those who would be affected by the Government’s withdrawal of the winter fuel allowance and therefore it is important that they consider very carefully the possible impacts on members of the public.”

People receiving single-person council tax discount in Hampshire districts and boroughs in 2023:

Basingstoke and Deane 23,492 (29.49%)

East Hampshire 16,528 (30.06%)

Eastleigh 18,751 (31.43%)

Fareham 15,090 (30.55%)

Gosport 13,519 (37.33%)

Hart 11,984 (28.98%)

Havant 19,057 (34.03%)

Rushmoor 13,104 (33.06%)

Test Valley 17,544 (30.85%)

Winchester 16,984 (30.72%)

New Forest 25,957 (31.88%)