Council tax: 'Expensive homes should lose discount'

The Local Government Association suggests people in larger homes should lose their discount Credit: Joe Giddens/PA Wire

People living alone in large homes should lose their council tax discount to free up more money for struggling families on low incomes, local authorities say.

Single dwellers currently receive 25% off their council tax bill, but under new proposals the Local Government Association (LGA) wants councils to be able to adjust the discount for working people living alone in homes rated council tax band E and above.

Its own analysis has shown that it is costing councils more than £200 million a year to give the compulsory discount to people living in such properties, which are typically bigger and more expensive than the average family home.

At the same time, it said one in three local authorities expects they will have to reduce council tax support for families on low incomes because of a major shortfall in Government funding for the subsidy.

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