Council Tax: Support Schemes

Baroness Armstrong of Hill Top Excerpts

Thursday 12th June 2014 Lords Chamber

[Baroness Stowell of Beeston]

My Lords, we think the approach that we are taking on the local council tax scheme is the right one because we are allowing local authorities to have a vested interest in supporting local people back into work. In Manchester, for example, they are doing some innovative work and ensuring that by helping people back into work they benefit from the collection of extra taxes.

[Baroness Armstrong of Hill Top (Lab)]

My Lords, does the Minister recognise that there are some areas of the country, such as the one I come from, where there is no increase in employment—or at least no decrease in unemployment—and where councils know that the greatest cuts are yet to come? Next year and the year after the election will see every local authority having to find much greater cuts. In areas such as mine, there are still vulnerable people, who, whatever the local authority or charities are doing, are finding it difficult to access work. What is going to happen to them?

[Baroness Stowell of Beeston]

My Lords, I understand that certain parts of the country have faced greater challenges than others. Individual local authorities have much greater capacity to raise revenue through their tax-collecting regimes. Certainly, local authorities are starting to build up reserves at a rate that is quite staggering. They are now collectively sitting on £19 billion. I would therefore urge local authorities to look to what measures they can take before requiring further money from central government.