Keep the single person's 25% Council Tax discount - a basic principle of fairness

It was 1993 when council tax became the method of how households pay towards local government services and policing. A case can be made for updating how local government is financed, including updating from the 1991 banding valuations, but I am concerned that the Labour government are going to make a dog’s breakfast of it and introduce much unfairness into the system.

Of concern is that Labour’s Deputy Prime Minister Angela Raynor, as well as subsequently Keir Starmer, have not ruled out ending the 25% council tax discount for single-adult households, when asked about it in parliament. I don’t rate her as being particularly competent, so it is possible she didn’t answer correctly, but as I write, she hasn’t issued any correction or clarification, which makes me fear that it very much is an option being considered.  

Nationally, there are 8.4 million people who live in single-adult households. About 4 million of these are pensioners, many of whom are widows or widowers. On average across West Sussex, the 25% discount is worth roughly £500 for a Band-D property, compared with properties of two or more adults. Clearly, households with only one adult use less local government services than those with two or more, so it’s basic fairness that these households pay less.

It could be argued the single-adult discount should be more than 25%, but the discount being 25% is long established. What would be an absolute travesty is removing the single-person discount alltogether, meaning that for example, an elderly widowed pensioner on a basic state pension, could be paying the same as a household next door with two or more working people on good salaries.

If Labour are now targeting single people in their budget next month, it risks being a triple whammy for many pensioners, who are still reeling from being told they won’t be receiving their winter fuel allowance. October is when energy costs rise by 10%, just as the days are getting shorter and the cooler weather arrives. All single people have greater challenges running their household and I strongly urge the Labour government not to remove their 25% council tax discount.  

Campaigning to stop Labour taking away Pensioner's Winter Fuel Allowance

Two things in politics that sit badly with the public are hypocrisy and being disingenuous. Unfortunately, many now see this as the ‘new normal’ under the Labour government that will become two months old this week. Cheered on by their enormous number of MPs and councillors, who now wield a huge amount of power over our lives, we are seeing decisions being taken by Labour that they have previously opposed and/or have falsely accused the Conservatives of planning to do.

The internet does not forget. There are many Labour videos and social media posts while they were in opposition, including of Keir Starmer and Angela Raynor, blaming the Conservatives for rising energy prices and implying we Conservatives would take away the winter fuel allowance for pensioners. During the energy price spike, the then Conservative government put in place measures to subsidise household energy bills to lessen the financial pain. Thankfully prices then reduced although they are still high by historical standards.

However, when it was recently announced that energy bills would be rising by 10% from this October, out trots Labour still blaming the Conservatives. As well as not providing the major energy support for all households that the Conservatives did, Labour are now taking away the winter fuel allowance from ten million pensioners, worth up to £300.

We Conservatives strongly oppose this poorly judged measure. I welcome that as a party, we are challenging this decision in parliament. What will help is public pressure. I have signed the Age UK petition and I encourage everyone to do so. 

What is especially galling is that Labour are falsely blaming the Conservatives for leaving a black hole in the public finances, for removing the winter fuel allowance, when it is Labour creating a budget black hole, by instantly caving in to inflation-busting (and probably inflation-creating) pay demands from trade unions. It is no coincidence that trade unions are the biggest financial backers of the Labour party and their MPs.

Remember Things Can Only Get Better? Now, it's Things Can Only Get Worse...

 

We have seen a host of economic data published over the last fortnight that shows where the country was at the end of the previous Conservative Government. It is important to note this data in order to benchmark how the economy performs from this point onwards under the Labour Government. The new government tried to gloss over this data as they don’t want you to hear it.

For both the months of May and June, it was very welcome to see to that inflation had fallen back to the Bank of England target of 2.0%. However, for the month of July, Labour’s first month of office, it crept back up to 2.2% and we are already seeing policy decisions from Labour that risk stoking inflation further. June also marked an entire year of average wage growth rising by more than inflation, helping people to be better off

Economic growth data was also released. For the quarter of April/May/June, we saw growth of 0.6%. This follows the previous quarter of 0.7% growth, meaning that the UK has the highest economic growth of all G7 countries in 2024 so far, even higher than the United States. This nice inheritance for the Labour Government left by the Conservatives is in stark contrast to what we inherited from Labour in 2010, when the UK’s economic growth was the lowest in the G7 and unemployment was at 8%.

Every Labour government there has ever been, has left office with unemployment higher than when it entered office. The unemployment data released last week showed a fall to 4.2% for the end of June, down from 4.4% the previous month. The key economic figures to remember for what Labour inherited are inflation at 2%, two successive quarters of growth at 0.7/0.6% and unemployment at 4.2%.

Labour’s claims of a poor economic inheritance are absolute nonsense. To make such claims as a reason to scrap the winter fuel allowance for pensioners is disingenuous. Thousands will be impacted in Crawley and the real reason is to fund inflation-busting pay rises for trade unions that donated to the Labour party. 

We are now being told that Keir Starmer will be giving a speech this coming Tuesday saying that things can only get worse. For once, Captain Flip Flop is right on the outcome, but he is wrong on the cause. He will continue to cynically blame the previous Conservative Government as cover for his Labour slash and burn policy program, which will be the real reason for things only getting worse.  Like many, I remember Labour last coming to power in 1997 and using the D-Ream song Things Can Only Get Better as their anthem at the time. They let people down then and they are doing the same now. I've seen it all before.