header-logo header-logo

24 September 2025
Issue: 8132 / Categories: Legal News , Human rights , Tax , Local authority , Discrimination
printer mail-detail

Tax scheme was irrational & discriminatory, court rules

A local authority council tax scheme ‘double counted’ a disability pension and carer’s allowance, the High Court has held

R (on the application of LL & AU) v Trafford Metropolitan Borough Council [2025] EWHC 2380 (Admin) concerned Trafford Council’s working age local council tax reduction scheme for the current tax year. Claimants LL and AU previously received a 100% reduction on their council tax, but in March they were each billed for the full amount.

They argued, first, the scheme was unlawfully adopted as the decision was taken by the executive committee rather than the full council. Second, its design was discriminatory since the means test ‘double counted’ certain benefits and pensions. LL’s private occupational pension and AU’s carer’s allowance reduced their actual income from universal credit but increased their deemed income under Trafford Council’s system.

Trafford Council accepted their system had flaws but attributed this to the software it used. While it had requested an amendment to the software, it was dealing with the issue by granting discretionary relief where necessary.

The claimants rejected the argument that only the software was flawed, and contended the issues were inherent in the scheme itself. Moreover, many residents were at risk of discretionary relief being denied.

Quashing the scheme and ordering the claimants be compensated, Judge Pearce said: ‘A scheme which requires the exercise of discretionary support is not sufficient to rescue it from a finding of irrationality.’

Judge Pearce noted that, to receive discretionary support, ‘a person has to make application to a potentially limited fund that makes usually short-term award payments and from which application there is no right of appeal’.

Carolin Ott, senior associate at Leigh Day, representing the claimants, said: ‘The council must go back to the drawing board and ensure that a lawful and fair scheme is put in place.’

MOVERS & SHAKERS

Harneys—Maggie Kwok & George Weston

Harneys—Maggie Kwok & George Weston

Harneys senior leadership appointments

Freeths—Keith Browne & Jim Jordan

Freeths—Keith Browne & Jim Jordan

Freeths strengthens London Construction and Engineering practice with two strategic senior hires

Anthony Collins—Laura Moss

Anthony Collins—Laura Moss

Anthony Collins announces strategic hire to deepen skills base in the social business sector

NEWS
More than 100 teams from the legal and financial services sectors competed in five sports at the 51st Law Society RFC Festival of Sport earlier this month
Part-time status need only be an effective cause of less favourable treatment, rather than the sole cause, the Supreme Court has held in Augustine v Data Cars
Britain’s new acknowledgement that Israel’s occupation is unlawful, and accompanying settlement-goods ban and sanctions, is significant but overdue, argue Danny Friedman KC and Victor Kattan in NLJ this week
New planning fee rises, wider trade union access rights and a service-by-email trap feature in Stephen Gold’s latest Civil Way
Existing defamation law can respond to AI ‘hallucinations’, but allocating responsibility will prove harder where outputs reach users without human intervention
back-to-top-scroll