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

Carter-Ruck—Tomas Vail

Carter-Ruck—Tomas Vail

Carter-Ruck strengthens International team with appointment of arbitration partner Tomas Vail

Slater Heelis—Nick Terry

Slater Heelis—Nick Terry

Slater Heelis strengthens crime and regulatory team with appointment of Nick Terry as partner

Payne Hicks Beach—Thomas Moran & Sarah Gogan

Payne Hicks Beach—Thomas Moran & Sarah Gogan

Payne Hicks Beach strengthens private wealth offering with appointment of two new partners

NEWS
Expert witnesses face a multitude of risks and uncertainties when using artificial intelligence (AI) in their reports, IT specialists have warned
The Ministry of Justice (MoJ) has accepted Richard Lloyd’s recommendations for the Legal Services Board (LSB) and ordered a ‘comprehensive review of the regulatory framework’, likely to continue beyond 2029
More than one-third of expert witnesses now use artificial intelligence (AI) regularly or occasionally in their work, according to Bond Solon’s 2026 expert witness survey
General counsel have warned law firms not to keep artificial intelligence (AI) savings to themselves or risk losing work
Some 53 firms have been successfully assessed for legal aid contracts for inquest work and will now move to the verification stage, the Legal Aid Agency has confirmed
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