Progressive councillors demand reimbursement of council tax lost through exemptions and discounts

The Progressive Group of city councillors on Exeter City Council will this week call on the Labour-led Council to lobby government to reimburse local councils the money they lose through council tax exemptions and discounts [1]. The amount of council tax not collected in Exeter due to such exemptions totalled over £13 million in the last year.

Liberal Democrat councillor Michael Mitchell, who will put forward the Council Tax Exemptions and Discounts motion at the Full Council meeting on Tuesday, said:

“The government has already accepted the principle of 100% reimbursement to councils for annexes where members of the family live. These are treated as part of one property and therefore don’t pay two sets of council tax. We want them to go further.

“It is important that there are Council Tax discounts and exemptions for single people, students, people with disabilities and other categories. These groups, like everyone in the city, depend on essential services, provided by councils. However, the funding for these services has faced savage government cuts in recent years. 

“We therefore demand the government reimburse councils for the income they don’t receive from exemptions and discounts to council tax to help councils maintain essential services [2]. This would be a real form of levelling up and provide fairness and equity within the system.”

ENDS

Notes

[1] Notice of Motion by Councillor M. Mitchell under Standing Order No. 6 (seconded by Councillor Tess Read)

Council Tax Exemptions and Discounts (http://committees.exeter.gov.uk/ieListDocuments.aspx?CId=114&MId=7092&Ver=4 Item 14)

Request Exeter City Council to lobby both of our local Members of Parliament, the Local Government Association and the Department for Communities and Local Government to require central Government to include in future annual Local Government financial settlements full reimbursement to Local Authorities, Police and Crime Commissioners and Fire and Rescue Services for losses of council tax income due to nationally legislated exemptions and discounts.

[2] Each local council area is impacted differently regarding discounts and exemptions. In the case of Exeter, 7,500 properties are totally exempt, with the vast bulk of these due to student exemptions. 20,646 individuals receive discounts, almost entirely single person discounts. A further 4450 individuals receive Local Council Support, a means tested benefit. Currently in Exeter, 63,005 properties are on the council tax register including the exemptions. The amount of council tax not collected in Exeter due to exemptions for the year to 30/01/23 totalled £13,295,077.33