Labour admits its council tax scheme hit York residents more than expected - and backs calls for a U-turn

The city's council tax support scheme, which replaced the Government-run council tax benefit, makes everyone pay at least 30 per cent of their bill regardless of their circumstances, a threshold much higher than the national council average of 13 per cent. Previously, residents in extreme hardship could claim exemption against their entire council tax bill.

Researchers and campaigners have criticised York's scheme as one of the harshest in the country. Labour, who were in power when the scheme was drawn up, has now backed a review of the scheme, to help people struggling the most.

The motion will be discussed at City of York Council's meeting on Thursday

Cllr Neil Barnes, Labour's finance spokesman, said: "The impact on some has been bigger than we expected, so we want to do something to address that as soon as possible."

Cllr Barnes has put forward a motion for Thursday's council meeting asking for a planned review, promised by the Conservative and Liberal Democrat coalition that took power in May, to be brought forward to October so there is time to bring in changes for the next financial year.

He said: "Reading about and listening to the everyday stories of people affected I hope will encourage Conservatives and Liberal Democrats, and I hope the Greens, to support this motion."

From left: Cllrs Neil Barnes, Chris Steward and Keith Aspden

Experts at Advice York have been researching the council tax situation in York for months. They said as many as a third of people affected turn to loans to cover their council tax bills, while nearly half reduced the amount they spent on food or fuel. Councils were ordered to exempt pensioners from the national cuts to the council tax welfare budget when control passed to local authorities in 2013.

Research coordinator Rebecca Jeffrey, from Advice York, said the 30 per cent limit set by York is the highest in the country, and she urged councillors to review the programme in time for the next financial year.

The move is likely to win the support of Green councillors, who say the current programme has caused "a great deal of harm".

Guildhall councillor Denise Craghill said: "Research has shown that any reduction in the amount required of people would be a huge help. I would very much like to see this review go forward in a timescale that can make a difference."

Conservative council leader Chris Steward dubbed Labour's move a "bizarre u-turn" and said that with the new ruling executive already committed to reviewing the scheme, their opponents were "cynically attempting to play politics as they seek to campaign for a change to one of their policies."

Lib Dem leader Keith Aspden said Labour councillors brought in the original rules against opposition from his party, making the party's new position "surprising to say the least".

He added: "After taking power in May the new executive agreed to review Labour’s system to see if we could offer more support to residents dealing with these council tax issues. Labour are now belatedly backing our review while trying to gain political points through this motion.

"We will continue to work with partners on this issue, including Advice York, to look at the best way forward and I hope Labour councillors will engage with this process as we go ahead with our review.”

Cllr Barnes said the Labour group had considered trying to change the scheme before they lost control of the council, but missed a crucial deadline while setting last year's budget and instead put more money into the York Financial Assistance Scheme.