At today’s full Council meeting (12th December), Leader of the Opposition and Lib Dem Group, Councillor Howard Sykes, will propose a motion expressing Oldham Council’s disappointment that the Labour Party in the House of Lords opposed a cross party proposal that would have helped protect Oldham’s poorest citizens from cuts to Council Tax Benefit.
Every council is now required to agree its own local Council Tax Benefit scheme by 31st January 2013. However local authorities are allowed a lot of local flexibility within the law.
The cross party proposal was to change the law to allow local councils (if they wished) to reduce the Single Person’s Discount from 25 to 20%, for non-pensioners.
In Oldham, this measure would have generated £970,000 of extra income per year.
“Local authorities should have regard to the most vulnerable in their area when drawing up their scheme,” stated Councillor Howard Sykes. “It is right for local councils to take account of the local circumstances in their communities and to draw up a scheme that they believe is appropriate for them”.
“Oldham’s Liberal Democrats would have liked the opportunity to have proposed this measure for approval as part of our alternative local Council Tax Benefit scheme,” stated Cllr Lynne Thompson. “In hard times, this would have freed up almost £1 million to reduce the Council Tax bills of the poorest households in the Borough.”
“By opposing this measure in the Lords, and so bringing about its defeat, Labour has inflicted greater financial hardship on those local citizens who are least able to bear it,” said Councillor Sykes.
“Hopefully Labour locally in Oldham will join us in condemning this move and put the interests of citizens of this Borough first and politics second (something they are quick to accuse the Lib Dems of not doing) and back our motion. We shall see what they do over this key local issue and if their rhetoric on such issues is just that!”
Copy of Motion
“This Council expresses its objection to the cuts made in the Council Tax Support Scheme and reiterates its intention to attempt to protect those low-income households in Oldham who would be most affected.
Council welcomes all-party initiatives by the Local Government Association (LGA) which have succeeded in improving certain elements of the scheme, including securing a transitional grant, which in Oldham’s case amounts to £461,000.
This Council also notes that one of the measures proposed by the LGA to allow Councils to be more flexible was a proposal to reduce the single person discount for non-pensioner households from 25% to 20%.
In Oldham Borough, it is estimated that this could have made an additional £970,000 a year available to help less well-off households.
This proposal was supported by the LGA Conservative, Labour, Liberal Democrat and Independent Groups. An amendment to introduce it was moved in the House of Lords on 23rd October.
This Council notes with disappointment that the Labour party in Parliament issued a three-line whip instructing its members in the Lords to oppose it, ensuring that it was defeated. Council believes this was an action of political opportunism driven by the belief that without lower income families feeling the pain, Labour would not get any electoral gain.
Council notes that the only Labour Member of the House of Lords with the courage to stand by his principles, defy the whip and support the amendment was the Leader of Wigan Council and Chair of both the Association of Greater Manchester Authorities and Greater Manchester Combined Authority, Lord Smith of Leigh.
Council resolves to instruct the Chief Executive to:
• Write to Lord Smith to congratulate him on his principled stand in supporting the less well-off in Greater Manchester;
• Write to the Local Government Association expressing the Council’s support for the proposal and to urge all parties on the LGA to continue to press Government and the Opposition on this matter.
Proposed: Cllr Howard Sykes
Seconded: Cllr Lynne Thompson
