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MPs criticise 'fundamentally perverse' council tax incentives

The incentive to work for some families has withered because of changes to council tax benefits, with some losing as much as 97p out of every extra pound they earn, the Public Accounts Committee has found.

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Councils are 'tackling the biggest cuts in living memory'

Local authorities are "tackling the biggest cuts in living memory" and urged the Government to give them the full amount of funding needed to provide adequate council tax support for vulnerable residents.

Chair of the Local Government Association's Finance Panel, Sharon Taylor hit out at Government cuts after the Public Accounts Committee published a scathing report into measures taken by local authorities in the wake of cuts.

The shortfall between the money councils receive to fund council tax support and the money we would need to protect those on low incomes is getting bigger and is likely to reach £1 billion by 2016.

At the same time, councils are tackling the biggest cuts in living memory and cannot afford to make up the difference.

The Public Accounts Committee's call for Government to review the scheme echoes concerns raised by councils.

Government should consider giving local authorities the full amount of funding needed to provide council tax support.

– Sharon Taylor

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