Agenda item

To consider the Member Motion regarding a Council Tax Freeze.

Councillor Caton presented his motion on a proposed freeze to Council Tax for the 2023/24 financial year. He said that, due to the turbulent economic times, the Council needed to consider what support could be targeted at vulnerable groups and he felt that this could be achieved by a Council Tax rebate for lower- and middle-income families. The motion itself was to commit to a freeze of UDC’s share of Council Tax whilst a decision was made on a possible rebate which could be distributed to homes in Council Tax Bands A-D.

Councillor Fairhurst seconded the motion.

Councillor Hargreaves proposed his amendment. He said that the wording of motion was unclear on what it was requiring, and as it was only advisory, the Council was not bound to it when setting next year’s rates. The amendment would allow for further discussions between officers and members, which was needed as a possible freeze would reduce council expenditure and income.

Councillor Reeve seconded the amendment.

Councillor Caton clarified that he had already had a conversation with the Section 151 Officer about the possibility of the Council increasing their Council tax which could then be rebated to homes in Council Tax Bands A-D.

Members discussed the motion and amendment presented to them. Those against the amendment argued that members needed to accept their leadership role in supporting residents in need, rather than adding to their financial burdens. The motion was agreeing to a freeze of Council Tax, in principle, which would benefit many residents who were struggling in the cost-of-living crisis. 

On the other hand, those in favour of the amendment argued that that members needed to work collaboratively with the Section 151 Officers to get the Council Tax proposals right, however, this could only be done once preliminary budget discussions had taken place. Voting to freeze Council Tax, without certainty of the Council’s financial demands for the upcoming year may result in a shortage in funding which would impact on services. Councillor Hargreaves highlighted that the Council did not that the ability to tax individual bands differently than what was in statute.

The Chair moved to a vote on the amendment.

The amendment was carried.

Councillor Fairhurst said that the original motion was a principal commitment and a gesture to those residents struggling at the current time as a rebate would have made a difference to them. By approving the amendment, the Council were pulling the gesture in order to do their homework.

Councillor Foley said that such gesture had not been put off, and that there was a broad agreement to move forward collaboratively.

Councillor Lees said that principles were easy words; it was not about whether you say it, but about whether you do it and members wanted to ensure that it was done right.

The Chair moved to a vote on the motion.

RESOLVED: In light of the Office for Budget Responsibility forecast that real household disposable income will fall by 7.1% between 2021/22 and 2023/24, worsening the existing Cost of Living Crisis and further squeezing the vulnerable and low to middle income families, this Council resolves to:

Hold a budget council tax workshop for all council members with the relevant officers, to ensure that members are clearly informed regarding tax proposals and options to ensure a full understanding is reached prior to decisions being made.

Council also notes the budget amendment passed unanimously last year that gave a £100 grant to 863 households cost £86,300 and was funded from the MTFS Reserve. The cost of a freeze on UDC’s share of the Council tax in 2023/24 benefiting households in the district is estimated to be £180,000.