Angela Rayner Sparks Outrage: Single-Person Discount For Council Tax At Risk Of Being Axed

Angela Rayner has sparked outrage after hinting that the single-person council tax exemption could be scrapped.

The single-person discount automatically reduces bills by 25 per cent for taxpayers who live alone, regardless of their financial circumstances.

It saves a person living alone in a band D property around £500 a year from their council tax bill.

However, councils reportedly pressured the Government to end the discount and scrap the five per cent limit on annual council tax rises.

The Local Government Association (LGA) wants the Chancellor to give councils the power to axe the discount – which they say is worth around £3 billion a year.

Speaking in the Commons this week, Housing Secretary Ms Rayner refused to commit to keeping the single-person discount in place.

Conservative former minister Graham Stuart said the discount ‘is so important to pensioners who are already losing out because of the absence of the winter fuel allowance’.

He urged Ms Rayner to ‘guarantee today, put gladness into all their hearts across the country’ that she would not look at removing the discount.

But she failed to do so, instead replying: ‘I find it astonishing that members opposite, after running down the economy in the way that they have, after the Chancellor had to come to this House to talk about the billions of pounds black hole, that they’re now trying to claim that this Government is about raising taxes.’

‘This Government is about ensuring that working people are better off, and we intend to do that.’

However, Rayner did rule out any increases to council tax in the Autumn Budget.

Shadow housing, communities and local government secretary Kemi Badenoch told MPs: ‘It’s been reported that the Secretary of State is being lobbied to increase council tax and remove discounts like the single occupant discount.’

‘Will she take this opportunity to reassure the House that the Government has no plans to increase council tax as they assured us before the election?’

Ms Rayner replied: ‘Yes.’

At present, council tax can be raised by a maximum of five per cent unless residents approve of higher increases in a referendum.

But Pete Marland, chairman of the LGA’s economy and resources board, said: ‘It should be for councils and their residents to decide how local services are paid for, not Whitehall.’

‘No other tax increase is subject to the extra cost of a referendum, as all other taxes are rightly seen to be within the mandate of the elected Government. The same should apply for council tax. The ballot box on local election day allows for people to pass judgment on their councils.’

He added that councils face up to a £6 billion funding black hole over the next 24 months ‘just to keep services as they are with no further cuts’.

Rumours swirled today that Rayner is also considering scrapping Margaret Thatcher’s Right to Buy scheme.

According to reports, the deputy prime minister and housing secretary attended an urgent meeting with local authorities in August to discuss housing reforms.

The department has not ruled out abolishing the right-to-buy scheme for newly built council homes in Rachel Reeves’ first budget this October.

Under Right to Buy, introduced in 1980 as one of Mrs Thatcher’s flagship reforms, the Government sells council housing at discounts of up to £100,000 to sitting tenants.

Ms Rayner bought her council house using the Right to Buy scheme in 2007 with a 25 per cent discount, making a reported £48,500 profit when selling it, albeit eight years later.

And a report on Monday saw more than 100 councils call for the scheme to be axed, claiming it has helped to create a £2.2bn hole in local authority accounts and exacerbated the UK’s housing crisis.

Last year, 10,896 homes were sold through Right to Buy, while only 3,447 were replaced, resulting in a net loss of 7,449.

Since 1991, the scheme has resulted in the loss of 24,000 social homes, according to official figures.

Monday’s report, commissioned by Southwark council, said scrapping Right to Buy was among a series of measures that could “wake the sleeping giant of housebuilding” and help Labour build 1.5m homes this parliament.

The party has previously promised to review the right-to-buy discounts available to those buying their homes, the scheme’s eligibility criteria, and how councils use the money from Right Buy sales.

A government spokesman said: “We are facing the most acute housing crisis in living memory, and that is why we are working at pace to reverse the continued decline in the number of socially rented homes.”

“We have made clear we will give councils and housing associations the stability they need and will set out further details at the next spending review.”

Shadow housing secretary and Tory leadership contender Kemi Badenoch accused Ms Rayner of wanting to “destroy one of Margaret Thatcher’s most transformative policies”.

Tory leadership rival James Cleverly added: “Margaret Thatcher gave ordinary people the opportunity to have the security and freedom of owning a home.”

“Angela Rayner wants to take that away.”