Council Tax Support at Risk for Thousands After Reorganisation

Concerns are rising over the potential reduction of council tax support for low-income residents in Gloucester following a proposed local government reorganisation. Currently, the Gloucester City Council offers a robust support scheme that allows working-age residents on low incomes to receive up to a 100 percent reduction on their council tax bills. This program benefits approximately 5,164 individuals, while an additional 2,461 pensioners also receive council tax support, which remains unaffected by local changes as it is governed by national regulations.

The planned reorganisation aims to merge Gloucestershire County Council with its district authorities, potentially jeopardizing the current support system. Declan Wilson, the Cabinet Member for Resources, expressed his concerns about the viability of Gloucester’s generous scheme under a single unitary authority. He stated, “What worries me is that Gloucester has a very good council tax support scheme for those who are really struggling. It’s the most generous of all of the councils in Gloucestershire. If we were a single unitary authority, would that survive? I doubt if it would.”

The city council confirmed that while local authorities must agree on a council tax support scheme for working-age residents, the pensioners’ scheme is determined nationally. A spokesperson for the city council noted, “The national scheme for pensioners offers up to 100 percent support.”

As discussions progress, three options for the reorganisation are being put forward to the government. These include creating a single unitary authority, dividing the county into eastern and western councils—one comprising Gloucester, the Forest of Dean, and Stroud, and the other including Cheltenham, Cotswold, and Tewkesbury. An alternative proposal from the city council suggests establishing a Greater Gloucester unitary council, while a separate unitary authority would manage the remainder of the county.

Councillors across Gloucestershire are set to discuss these options, with final proposals required to be submitted to the government by November 28, 2023. A public consultation on the proposed changes is anticipated early next year, after which government ministers will decide which option to implement during the summer.

If the current timeline is adhered to, elections for the new council or councils are set for May 2027, with the new authority officially taking over from the existing seven councils in April 2028. More detailed information about the proposals and the schedule for council meetings can be accessed on the Future Gloucestershire website, dedicated to devolution and local government reorganisation in the area.

As the debate unfolds, the fate of council tax support for vulnerable residents remains uncertain, raising critical questions about financial assistance for those most in need in Gloucester.