Labour’s loophole

GIVEN the antipathy towards the so-called bedroom tax, some will welcome Leeds City Council’s attempt to circumvent the contentious changes. By redesignating 865 council-owned properties by reducing the number of rooms classified as “bedrooms”, the Labour-led council appears to be exploiting an unforeseen loophole.

The reason is this. Tenants, it is hoped, will still afford their monthly rent in spite of these changes and not fall into arrears – an ingenious method to protect the poor and the council’s coffers.

Others will be less charitable. This subtle change still has to be funded by the cash-strapped council – rather than the Department of Work and Pensions – and it has repercussions for householders across Leeds.

Given that the average bedroom tax “victim” will lose £14 a week, and 865 properties could be redesignated, the total annual bill could be in the region of £630,000. This will have to be funded by even deeper cuts – councillors cannot expect to be bailed out by government grants – or by raising council tax bills.

Significantly, neither was mentioned in yesterday’s launch press release, an omission which will lead many to conclude that this is just the latest phase of Labour’s wider offensive to discredit changes to the benefits system.