Lancaster city councillors clash over Council tax help for most vulnerable

Councillors have again clashed in an annual debate about whether people on low incomes should pay Council tax.

Lancaster City Council is one of only a few local authorities in the UK to provide 100 per cent Council tax relief to working age claimants on low incomes.

It has done so since 2013 but must review this every year.

At a meeting at Morecambe Town Hall on Wednesday, Councillor Tim Hamilton-Cox of the Greens, cabinet member for finance, recommended that the scheme be retained for 2025/26.

The majority of councillors voted in favour.

But Councillor Andrew Gardiner, leader of the Conservatives on council (below), said he would not support it.

In recent years, Councillor Gardiner has consistently opposed the idea of 100 per cent Council tax support.

"Everyone in society should pay into society," he said on Wednesday.

"They use the services, they use the roads, they use the waste disposal services we provide, they use the police, they may have to use the fire (service) sometimes as well.

"Nobody should be given a free ride. 

"We all find it difficult with our finances, I'm finding it difficult at the present time, but I haven't asked anyone to reduce my Council tax and I'm on less than the minimum wage should be. But I stand proud that I pay my bit into society. That's what I believe in, that's what I was brought up to believe.

"I still believe there should be a 10 per cent fee."

But Councillor Mandy Bannon of the Greens (below), who also works for Citizens Advice, said: "Council tax support is a lifeline to many of our most vulnerable clients who we see walking through our doors every day.

"In some cases, Council tax support is the only benefit some clients qualify for.

"Many are entirely reliant on benefits due to being too sick to work. Benefit rates are low and energy prices are high, resulting in many of these people being in or at risk of fuel poverty. Many of these people would be pushed into further poverty if the Council tax support was removed."

And her colleague Councillor Dave Brookes said: "I think (Councillor Gardiner) doesn't understand means testing.

"If you means test someone and you determine that they can't afford to pay, having an ideology where you say well, they should pay something regardless, seems like cruelty to me."

Councillor Phillip Black, of Labour (below), said: "It shouldn't be (a choice between) heating, eating or pay your Council tax...I don't think that's a fair position to put anybody in.

"I suggest that those of us with the broadest shoulders should bear the greatest burden."

Councillor Gerry Blaikie of the Liberal Democrats, asked if the 10 per cent proposal was implemented, "would the council actually spend more money on legal fees trying to recover the cost of Council tax not being paid by these people, than it would actually make?"

Councillor Hamilton-Cox said: "It is means tested, it's not a gimme, this benefit, and the threshold is quite low.

"Councillor Blaikie, I agree with your point. It is costly to go after non-payers."

Currently 9,310 residents claim Council tax relief in the Lancaster and Morecambe district.

Pensioners make up 38 per cent (3,565) of claimants.

A council report said: "A reduction in the levels of support provided could arguably provide claimants with further incentives to work, reducing their reliance on benefits, although the jobs market is particularly uncertain at this difficult time.

"This option will have greater adverse financial impact on working age households but would help protect other council services by requiring less savings to be made by them.

"If levels of support are reduced, the council would be tasked with the difficulty of collecting this debt from the more vulnerable members of our society, increasing workloads and costs associated with council tax recovery."

Read more: "Free ride" claim sparks row over council tax relief in Lancaster and Morecambe - Beyond Radio

Also at Wednesday's meeting, concerns were raised because the council currently has to fill a £1.678m deficit in order to balance its next revenue budget, a gap which could rise as high as £4.758m in future years.

Councillor Hamilton-Cox, (below), said there were "a lot of proposals" being discussed on how to balance the budget.

He said more detail would be revealed early next year.

But Councillor Gardiner said the medium term financial strategy report prepared for councillors was "clear as mud" and said that in his years on council he'd "never come to a (pre-budget) meeting with so many question marks".

Councillor Hamilton-Cox said there was "uncertainty" because the council was still waiting on full details of the Local Government Finance Settlement (money awarded to local authorities from the government) and a National Insurance contributions rebate, and the cost of a commercial property review was "still being finalised".

"Projects are ongoing and there are a lot of streams of work progressing within the council in order to ultimately achieve savings in the budget," he said.

"Some of these issues will be resolved by budget time. Some may not be. But the budget process is going to be a continuous one.

"I can assure you (we) are working towards creating a balanced budget."

The meeting was the first of full council since Councillor Caroline Jackson (below) was elected the new leader, and a new cabinet was appointed, made up of Greens, Liberal Democrats and a Morecambe Bay Independent.

This came about after the collapse of the Labour-Green alliance which had previously dominated the cabinet, and the resignation of former council leader Phillip Black and Labour colleages.

Councillor Black resigned on November 13, accusing the Greens of forcing him out, saying they had given him an ultimatum to resign or face a vote of no confidence.

He said the ultimatum came because the Greens are now the largest group on the council, with 23 seats to Labour's 21.

Councillor Caroline Jackson said at the time, that the resignation had been "abrupt" and that "perfectly civil negotiations" had been going on between themselves and Labour.

Both sides have since blamed the other for the collapse of the alliance.

Councillor Black had been expected to remain as leader until May, under a cross-party agreement after the 2023 local elections.

Labour have now said they will be a "supportive and constructive opposition" group on the council.

Read more: Lancaster City Council leader dramatically quits as Labour-Green alliance collapses - Beyond Radio

New Lancaster City Council leader elected - Beyond Radio

At Wednesday's meeting, new council deputy leader, Liberal Democrat Councillor Peter Jackson (below) spoke in the absence of the leader, who was unable to attend as she was at a Local Government Association event.

He thanked Councillor Black, and the other former cabinet members from Labour, for their "hard work and commitment, energy and enthusiasm" while on the cabinet.

In response, Councillor Andrew Gardiner asked why Councillor Caroline Jackson had "disrupted a stable administration to create an unstable administration".

Councillor Peter Jackson replied: "It's really something I stood aside from as the process was going on. I wished that negotiations would be successful between the Green and Labour parties and they were not. I will ask the leader to give you a written response."

Councillor Catherine Potter, former Labour cabinet member for the visitor economy, then asked why the Eden Project Morecambe now appears under the list of responsibilities of the leader (who represents a Lancaster ward) and not the new cabinet member for the regeneration of Morecambe, Councillor Martin Bottoms.

"Councillor Jackson gave the impression that she was already phenomenally busy...so it's clear that Eden will not get the due attention that it deserves," said Councillor Potter (below).

"It's imperative in my opinion that it's led by a councillor whose party represents the people and businesses of Morecambe and who champions the visitor economy of the town."

Councillor Peter Jackson replied: "My understanding is that both Councillor Jackson and Councillor Bottoms will be involved in every meeting to take the Eden Project forward.

"I don't think for a moment that Councillor Jackson would have taken this on if she didn't feel she had the time to do a good job of it.

"Like yourself, she and I would agree that it is enormously important."

The Eden Project Morecambe is a planned new visitor attraction on the central Promenade, due to open in 2028.