A North Somerset Council cabinet member has raised urgent concerns that proposed cuts to the council tax reduction scheme may push vulnerable residents into deeper poverty.
Facing an unprecedented financial crisis, the council is consulting on plans to save £500,000 by reducing discounts for low-income working-age households. Currently, 11,250 households in North Somerset live on less than £1,400 a month and benefit from council tax discounts of up to 75%. The proposed changes would reduce these discounts by 10 percentage points for working-age residents, leaving many struggling to meet their tax obligations.
Council tax is based on property values, not income, making the reduction scheme a vital form of support for those with limited means. Jenna Ho Marris, cabinet member for homes and health and Green Party councillor for Pill, highlighted the government’s role in funding shortfalls: “Since 2013 councils have been responsible for funding their own council tax reduction schemes, but government funding has not kept pace. Between 2010/11 and 2024/25, councils have seen a 20% drop in funding per person.”
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Ms Ho Marris warns that without fair funding, councils face impossible choices between harsh cuts or financial insolvency. “In this cost-of-living crisis, cutting council tax support risks pushing more families into hardship.”
Bridget Petty, leader of the Green group on the council, echoed these concerns. “Mental health professionals emphasize poverty as a primary preventable cause of ill health. Reducing support will only keep people trapped in poverty.”
The current scheme provides a sliding scale of discounts; for example, a household earning nothing receives a 75.5% discount. The proposal would lower that to 65.5%. Households with incomes between £1,000.01 and £1,400 would see their discount slashed from 18% to 8%. Pensioners’ discounts would remain unchanged, as these are mandated by the government.
North Somerset Council currently spends around £5.8 million annually on council tax reductions for working-age households. The proposed changes would cut this to £5.3 million in an effort to help close a looming £10 million budget gap. Complicating matters is the government’s ongoing “fair funding review,” which may reduce the council’s funding by an additional £17 million in the coming years.
Council leader Mike Bell stated, “Every service is under review, and we face difficult trade-offs. We must balance affordability and fairness for those relying on council tax reduction, while maintaining essential services for all residents.”
In response to the consultation, the council plans to introduce a discretionary hardship fund for those genuinely unable to pay. Applicants would need to demonstrate financial hardship, confirm they have claimed all eligible benefits, and show efforts to pay their council tax.
This is not the council’s first attempt at reducing council tax discounts. A similar proposal last year faced strong opposition and was ultimately scrapped during the equality impact assessment process, as it was feared the cuts would exacerbate inequality and might contravene the Equalities Act.
North Somerset now faces the risk of issuing a section 114 notice, a formal declaration of financial distress, and is in talks with the government for emergency funding. Mr. Bell warned, “After years of austerity, councils like ours are pushed to the brink. We have saved millions, but government continues to reduce funding while increasing our responsibilities. Exceptional financial support comes with conditions, including council tax increases for residents. This is a last resort and a direct consequence of government policy.”
The council’s consultation on the council tax reduction scheme runs until 5pm on January 6.