High Court judge rejects JR challenge over council tax rebate scheme

A High Court judge has rejected a judicial review challenge against the London Borough of Haringey over its council tax rebate scheme, but has given the claimants permission to appeal.

The claim against Haringey was one of five court actions being brought on behalf of residents by Irwin Mitchell against local authorities. The law firm has also said it is investigating potential action against more councils.

The litigation arises out of the Government’s decision to abolish council tax benefit. The funding for replacement local authority schemes was cut by 10%, with authorities left to decide whether and how to make up the shortfall.

Irwin Mitchell has questioned why some councils are not taking up a Government offer of a grant if they limited council tax rebates to 8.5%. It has also claimed that some authorities are in breach of their duties under the Equality Act 2010.

At the High Court, it argued that Haringey’s decision to reject the Government grant was irrational and that the consultations the council undertook in deciding its rebate levels were unlawful.

However, the judge has now ruled against the claimants.

Irwin Mitchell lawyer Alex Rook said: “We are disappointed with the decision which potentially means that 25,000 of the poorest, most vulnerable, people in Haringey face the prospect of paying council tax for the first time. However the judge has granted permission to appeal the ruling which we hope will take place as soon as possible.
 
“Research has shown that council tax bills could rise by up to £600 a year from April for some households. This is a lot of money to low income families and many will simply not be able to afford the extra  payments as they are already struggling to cover the basics such as food and heating.”

A spokeswoman for Haringey said: “We welcome the ruling of the court, and the finding that our consultation process was fair and lawful. We hope that the localised council tax reduction scheme agreed by full council last month will now be introduced from the start of the financial year.”