Sutton’s council has decided to cut its tax reduction scheme, affecting low-income households.
Sutton: The local council is facing a tight budget. They decided to cut the council tax reduction scheme. This scheme helps low-income residents pay less tax. Other London boroughs have made similar cuts.
During a recent council meeting, the decision sparked anger among opposition members. They accused the Liberal Democrats of being out of touch with poverty. The new plan means every household must pay at least five percent of their council tax.
However, the pensioner discount will stay the same. The council hopes these changes will save between £700,000 and £750,000. Since 2013, councils have set their own tax reduction schemes. The government helps with pensioner support, but not for working-age residents.
Councillor Wendy Clark from the Conservative party expressed concern. She said this will hurt the lowest-income families. She pointed out a contradiction in the council’s report. It claimed to support vulnerable residents but admitted the cuts would hurt those struggling the most.
Clark shared her personal experience with poverty. She said, “Maybe they have never known poverty, but I have.” In response to the cuts, Sutton increased its Hardship Fund by £50,000. This fund helps residents with essential costs like food and utility bills.
Despite the increase, Clark believes it shows the council’s awareness of the impact of their decision. She noted that many people might not ask for help, leading to more financial and mental health issues.
The council’s tax exemption scheme costs £14.5 million annually. Most of this supports working-age households. Proposed changes include capping discounts and removing full exemptions.
Lib Dem Councillor Jake Short acknowledged the tough decision. He emphasized the council’s budget issues. He said many councils in London face similar challenges. Nearly half of London boroughs plan to change their tax reduction schemes next year.
Before the vote, the proposals went through two public consultations. Residents receiving support were less in favor of the changes. However, opinions were more mixed on the proposed band cap change. Despite opposition, the council believes they considered public feedback in their new proposals.
The council will discuss tax levels and the budget at the next Full Council meeting on March 3.
