Conservative Leader Councillor Mark Weston has expressed surprise over the apparent change of heart by the Mayor over the future of the Authority’s Council Tax Reduction (CTR) Scheme.
At the moment, Bristol is the only major English city which offers low income working families a 100% exemption from this property tax. Council officials report that it cost £37.2million in 2016/17 to provide support through its CTR scheme to 25,000 working age and 13,000 pensioner households. This figure may increase to £41.8million by 2018/19.
In February, the Conservatives moved a budget amendment – to come into effect 2018/19 – which would have increased annual revenues by over £7m by requiring a minimum 25% Council Tax contribution in order to save important frontline Council services. This was defeated by the votes of all the other parties including Labour’s Mayor Marvin Rees.
Now, less than five months later, a 12-week public consultation has been launched on reforming the scope of the city’s CTR provision.
Three options are under consideration, two of which introduce a 25% minimum payment and one which proposes an initial 7.5% basic contribution that will gradual increase over the years.
This discussion closes on 24th September 2017 with Full Council making a final decision on the matter later this year in November or December.
Cllr Mark Weston (Con, Henbury & Brentry) said: “Whilst not surprised by this announcement, which represents a major policy change by the Mayor, it is a bit rich that my group was lambasted on all sides for the very difficult position we took on this issue.
“The current arrangement of dispensations is, I am afraid, simply unsustainable.
“Of course, those households on very low incomes will have to be protected and I understand there will be a discretionary fund to meet these costs.
“Perhaps, it is better to have been proven right than well thought of but the Mayor’s dramatic U-turn on the reduction scheme is somewhat puzzling. Surely, he must have known full well that this review was in the pipeline when Labour voted against our budget amendment?
“I do not like the idea of imposing a tax burden on those who may be struggling to make ends meet.
"However, if the Authority is to continue to provide a wide range of public services, like libraries, children’s centres, parks maintenance etc, the kind of things people have come to expect, then new ways and means of paying for them have to be found.
"Sadly, and contrary to what Jeremy Corbyn would have you believe, the amount of money needed here simply doesn't grow on trees.”