Fairness, encouraging work and keeping homes occupied are at the heart of Sutton Council’s proposals for changes to council tax.
National changes to council tax benefits are set to leave Sutton Council with a £1.4million hole in its budget. The cut will strip local authorities of 10% of the expected funding for council tax benefits – leaving councils with the choice of either cutting frontline services or changing the amount of support offered to council tax benefit claimants.
Cllr Jayne McCoy, Chair of the Housing, Economy and Business Committee, said: “The Government has made the cut and local authorities have to deliver the pain.
“This cut has forced councils to make yet more difficult decisions about how to find the money to protect frontline services and make sure our most vulnerable residents are looked after.”
The council has looked at ways to raise the money without impacting on frontline services or raising council tax, and now it is asking local people what they think of their ideas – which include changes to council tax discounts and exemptions.
The proposals would see current exemptions on empty properties – which include allowing landlords with unlet homes to enjoy months without paying council tax – being scrapped.
At a time when there is a shortage of homes, these exemptions create incentives to keep properties empty, and the consultation process will determine whether residents support the council’s proposals to sweep them away.
These changes, if approved, could add up to £678,000 a year to plug the gap, and also encourage homeowners to get properties reoccupied as quickly as possible.
Other ideas will ensure those with the greatest needs are protected, and pensioners, disabled residents and households with children under the age of five will not see any changes to the way their council tax benefits are paid.
Further proposals out for consultation include a £3.55 a week council tax contribution from the unemployed, and small increases for working people to raise a further £789,000.
The proposals have been carefully calculated to spread the costs fairly across residents and not discourage people from getting into employment.
Cllr. McCoy added: “Preparing this document has involved some really tough decisions, but we have a responsibility to be fair to all people, to protect important frontline services, and to look after our most vulnerable residents.
“The ideas we’ve outlined make sure that only those who can afford to pay more will be asked to do so. It is very important to us that hard-working families are not penalised and that people who unfortunately find themselves out of work are not discouraged from taking a job.”
The proposals will be considered by Sutton Council’s Housing, Economy and Business Committee on June 12 and will then go out to public consultation.