The government has no plans to increase English council taxes, Angela Rayner confirmed, but she declined to say whether she would scrap the single person discount to the bill.
The deputy Prime Minister, who is also the secretary of state for housing, communities and local government, said her government “is about making sure working people are better off”.
But when asked in the Commons about the single person discount, which reduces council tax bills by 25 per cent for taxpayers who live alone, Rayner did not commit to maintaining it.
It comes amid widespread speculation ahead of Labour’s October 30 Budget over whether Sir Keir Starmer and Rachel Reeves will increase taxes in a bid to boost the Treasury take.
The election campaign saw Labour rule out raising income tax, VAT and National Insurance – but the door to capital gains or wealth tax hikes appears to have left ajar.
Conservative former minister Graham Stuart said the council tax discount “is so important to pensioners who are already losing out because of the absence of the winter fuel allowance”.
He made reference to previously universal payment to pensioners of up to £300, which the new government has announced will soon be available only to eligible benefits claimants.
He urged Rayner to “guarantee today, put gladness into all their hearts across the country,” that she would not look at removing the discount.
And Rayner replied: “I find it astonishing that members opposite, after running down the economy in the way that they have, after the Chancellor had to come to this House to talk about the billions of pounds black hole, that they’re now trying to claim that this government is about raising taxes.
“This government is about making sure that working people are better off and we’ll intend to do that.”
Shadow housing, communities and local government secretary Kemi Badenoch earlier told MPs: “It’s been reported that the secretary of state is being lobbied to increase council tax and remove discounts like the single occupant discount.
“Will she take this opportunity to reassure the House that the Government has no plans to increase council tax as they assured us before the election?”
Rayner replied: “Yes.”
Labour’s Budget – the first of its tenure – will take place on October 30, ahead of a multi-year spending review set to conclude in spring 2025.
Press Association – Will Durrant