New proposals could see some South Northants residents shell out extra £300 for council tax

South Northamptonshire residents who are struggling to pay their council tax bills could have to pay an extra £300 a year under new proposals.
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Council Tax Reduction Schemes are in place for Northampton, Daventry and South Northamptonshire, and are administered by the councils in each area. But they need to be merged into one for the new West Northamptonshire Council that will replace them next April.

And residents in South Northamptonshire will be most affected as they currently receive the most help, only paying as low as 15 per cent of their bill, compared to 20 per cent in Daventry and 35 per cent in Northampton. New proposals would see the minimum level set at 26.5 per cent for the new unitary.

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A motion from Liberal Democrat leader Councillor Chris Lofts asked council to revise the scheme so that no resident in South Northamptonshire sees a reduction in the support provided in 2021/22 greater than the current Consumer Prices Index inflation figure of 0.7 per cent.

Some South Northamptonshire residents who are given reductions on their council tax bills are likely to end up paying more when the new unitary council is formed.Some South Northamptonshire residents who are given reductions on their council tax bills are likely to end up paying more when the new unitary council is formed.
Some South Northamptonshire residents who are given reductions on their council tax bills are likely to end up paying more when the new unitary council is formed.

He said: “Our low income families will be facing a tsunami of financial pressure in the spring. Many of these people have been impacted by loss of jobs and income due to the COVID pandemic. I strongly believe we must continue to fight for our vulnerable families. I ask members across the council to continue our cross party approach to supporting low income families.”

It was worked out that the poorest residents in South Northamptonshire would have to find between £4 to £6 a week extra to meet their bill if they lived in a Band D property.

Councillor Peter Rawlinson, the Conservative cabinet member for finance, responded: “The total cost under the present schemes is just over £9 million. If we adopted the South Northants rate across the board it would cost £12 million, and the Daventry rate would be £10 million. The 26.5 per cent level makes it £9 million, which is why they have gone with it as it won’t cost any more than the current scheme. The logic is understandable.

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“This does not change that those eligible who are most economically challenged in South Northants could see a 200 per cent rise overnight in their council tax liability if they were on the maximum discount. Whilst this is a major problem for South Northants residents, one must balance that with the fact that many more will actually see their council tax liability reduce.”

The council’s deputy leader Councillor Phil Bignell meanwhile effectively questioned whether Councillor Lofts was playing politics, by saying he had supported the new proposals in discussions at the West Northants shadow council.

Councillor Bignell said: “This scheme went before a task and finish group made up of cross party members from all the councils. What mystifies me is that Cllr Lofts was on this task and finish group, and this recommendation was passed unanimously. Given that he voted for it, I fail to understand why he wants this council to question the recommendation he endorsed? Maybe he was just too embarrassed to vote against his fellow Liberal Democrats at Northampton?”

Eventually, Councillor Lofts’ motion was amended so that the council instead pledged to ‘continue to actively pursue all practical means to minimise any increase in financial liabilities’.

The amendment was rejected by Councillor Lofts, who said it ‘removes all teeth from the motion’, but the revision was passed by the Conservative administration.