CONCERNS have been raised that the possibility of Cornwall Council reducing council tax support for more than 19,000 households could impact vulnerable families and even lead to people losing their homes and jobs.

The council is going to consult the public about potential revisions to its council tax support scheme for working-age claimants, seeking views on amending the maximum award level from 75 per cent to 70, 65, 60 or 55 in a bid to save around £5-million.

Cornwall’s council is now seventh out of 317 local authorities in a league table of those with the most debt, with a debt level of £1.571-billion as of March 31. Unless the council makes huge savings in the next five years, that figure will rise to £2.360 billion by 2030/31.

Agreeing to proceed with a period of consultation, the council’s cabinet member for resources, Cllr Adam Paynter, said: “This is not a decision on whether to change the scheme itself, nor is it a decision on what any future level of support should be. It is a decision about whether we should consult on the available options before any final proposals are considered.

“Council tax support provides significant assistance to residents on lower incomes and I fully recognise the concerns that have been raised through the task and finish group of the corporate finance scrutiny committee about the impact any reduction could have on vulnerable residents and families already facing financial pressures.”

That committee’s preferred position was that no reductions should be made and that alternative funding should be identified.

“However, the council is also facing a significantly more challenging financial position than was anticipated when the budget was approved earlier this year,” added Cllr Paynter. “The medium-term financial plan approved by council in February included an assumption that £5 million would be saved through a review of council tax support and discretionary rate relief.”

He added that since then demand pressures on services have continued alongside forecast overspends, with ongoing volatility in council tax and business rates income, including the impact of retrospective reclassification of properties into self-catering accommodation, which has increased the financial risk facing the council and widened the budget challenge that must be addressed as part of the 2027/28 budget process.

“In that context, and having considered the scrutiny recommendations carefully, the proposal before me is to consult on a range of options for council tax support, including retaining the current scheme as well as different levels of reduced support and to seek the views of residents, precepting authorities, partner organisations and other stakeholders before any final decision is made,” said Cllr Paynter.

A decision has been made that there won’t be any changes made to discretionary rate relief, which helps charities, non-profit bodies and community groups.

Restore Britain councillor Roger Tarrant, who represents Redruth North, issued a warning during the Individual Decision Day meeting, which sees cabinet members sign off decisions which previously would have been made in private.

He said: “I’ve got a lot of single people in single households [in my division], who are in shared ownerships, that are up to the wire with cost of living, right to the penny, and they’ve told me that any reduction could see them losing their job and losing their homes.

“If they start losing their jobs and homes, there’s going to be an added cost more than the saving I would suggest.”

Cllr Paynter responded that the public consultation would allow those affected to share their views with the council. He also highlighted practical help the council is providing to households facing immediate pressures.

“Through the crisis and resilience fund, which I approved earlier this year, we paid nearly 1,400 households using heating oil £300 towards their costs. Around 95 per cent of those households are on council tax support, so there is a very clear link to the residents we are talking about today.

“We’ve successfully lobbied Government for regulation of the heating oil market, but we’re taking action locally too. Those households will receive a second payment this week and anyone using heating oil who hasn’t previously claimed can still apply through the council’s website.”

Residents can also find advice on the various services and support available in the guide to winter wellbeing which the council has just published.