Northumberland councillors have approved a revised council tax support scheme after the chairman used his casting vote to break a deadlock, a decision that will reduce support for thousands of households from April 2027.
The new system follows an error in the council's calculations that saw hundreds of residents hit with incorrect charges this year. The error, described as an "anomaly" by the council, related to the way in which employment support allowance and/or carers allowance were factored into decision-making.
Support Levels Cut in Lower Bands
Under the new scheme, the maximum level of support for the county's poorest households will remain at a 100% exemption from council tax. However, the level of council tax bill reductions in several lower bands will be cut – from 90% to 85%, 70% to 65%, and 40% to 35%.
The Tory-led council said keeping the support bands at current levels was "not a viable option" within its budget, due to the volume of claims and the forecast financial impact of correcting the anomaly. As a result, it is expected that 8,450 households will see a reduction in council tax support for 2027/28, most of between £1 and £2 per week. A total of 2,393 households are forecast to receive more support.
Split Vote and Casting Vote
Following a lengthy debate at full council on Wednesday, members were split with 28 votes for and against introducing the scheme. Conservative chairman of the council Coun John Beynon was forced to use his casting vote to push the scheme through.
Cabinet member for finance Coun Nick Oliver said: "This retains the principle of 100% support for the most vulnerable households. The other levels of support are slightly reduced. We need a council tax support scheme. We're still spending well over £10 million in discretionary support. If we don't approve this today, we have to go back to the drawing board and look for other savings in frontline services that we can cut. It's quite a serious situation - I would ask everybody to vote for the scheme."
But other members were not convinced. Independent councillor for Norham and Islandshires Patrick Lambert, who previously raised concerns about the current scheme, said: "There was an error in the calculation - what happened was we didn't do our homework properly. When the council tax was proposed, we slipped up."
Concerns Over Impact on Residents
Labour councillor Caroline Ball said the scheme was "too complex" and warned it would have a negative impact on residents, while fellow Labour member Vicky Oakley said: "I can't support this. I don't feel the full picture was given to us in the first place. These cuts have caused real financial hardship to a lot of our residents. This is going to plunge them deeper into poverty. We will see collection rates fall."
Despite this, because of the chair's casting vote, the new system will come into force from April 1, 2027.
