Thousands of Northants' poorest residents could be worse off when new council begins

Plans to charge thousands of the county’s poorest households up to three times as much for local authority services from April have been slammed as ‘a very bad plan’.

When the new unitary authorities come into being next spring the level of council tax support given to less well off households will change, meaning the various concessions offered by the area’s different local authorities will be scrapped.

The idea to bring in a 25 per cent council tax reduction rate will see Corby’s most hard up families asked to pay three times more in council tax, and altogether it is estimated almost three quarters of the 10,500 households in receipt of the benefit will have to pay more.

At the scrutiny meeting of the shadow council on Thursday (October 9), the plan, which is currently out to public consultation, was heavily criticised by opposition and independent councillors.

A task and finish group, chaired by Conservative councillor David Jenney, had come up with the proposal to set the reduction rate at 25 per cent and there are also no plans to have a discretionary fund to help those who can’t meet their bills.

Labour councillor Mark Pengelly said the move was political. The Labour-run authority currently gives the most support to its residents, with those eligible currently paying eight per cent of the overall council tax bill. Kettering Council currently gives the least financial support to its residents making them pay 45 per cent of the total bill.

Cllr Pengelly said: “It’s getting political now. One of the first proposals of this new North Northants shadow authority is to shaft Corby. Many, many residents of Corby are going to be worst off. I read through the consultation. I’m an experienced councillor and I don't understand half of it. We have got to put it more simplistic – we have got to let people know they are going to be worse off. There are going to be thousands of pounds taken out of Corby’s economy in April this year which is just wrong. When shops and offices are suffering. It is just not good for the people of the town I represent. We have got to look at a harmonisation project, bringing this in over a few years, if that is what you want to do.”

Labour councillor Adam Henley, who represents the Queensway ward in Wellingborough, was also hugely critical of the scheme and bemoaned the fact the scrutiny committee was looking at the plan after it had gone out to public consultation rather than before.

He said: “We are asking three quarters of our residents to pay more. In Corby’s case three times more. I’m really struggling to believe that won’t have an impact on collection rates.

“10,500 are already in receipt (of the benefit). I Imagine that is going to get worse. The country is not in great shape. So asking people to pay more feels like a very bad plan.

“I was disappointed that rather than a discretionary council tax support fund we are potentially offering them debt advice.

“‘We are asking you to pay three times more – we’ll talk to you about it’. Well isn’t that nice.”

Liberal Democrat Chris Stanbra, who was on the task and finish group, said the consultation, which closes on November 30, is only looking at one reduction rate and queried whether this was legal.

And independent councillor Jim Hakewill, who represents Rothwell and Mawsley, was also critical of the task and finish panel which has made the proposal because there is little detail that has come out of the panel and other councillors were not allowed to sit in to watch. He said the new unitary council which is elected in May should make the decision about the level of benefit residents should get.

He said: “This is not a consultation, it is an insulation.”

He also proposed the scrutiny committee should suggest the executive looks into a discretionary fund for those in financial difficulty.

Finance officer Glenn Hammons said it was expected collection rates will vary in different areas and councils were already seeing more requests for council tax support due to covid.

The final decision will be made by the North Northants shadow executive committee, which is led by Cllr Russell Roberts, on January 28.

The consultation is here