COUNCILLORS have backed plans to squeeze second home owners in order to protect benefit claimants, saying the poorest must be supported amid ‘devastating’ welfare cuts.

Durham County Council’s cabinet has approved creating a local council tax support scheme to guarantee that, despite deep Government cuts, payments to its council tax benefit claimants remain at current levels for the next 12 months.

The council will pay for the scheme by cutting council tax discounts on empty and second homes, and introducing a council tax premium on properties which have stood empty for more than two years of 150 per cent.

The move defies the Government’s preference that council tax support be cut for working age people, again putting Durham’s Labour leaders on a collision course with Tory ministers.

But Councillor Clive Robson, cabinet member for housing, said Coalition welfare cuts would have a devastating effect and the council must protect residents.

“Even though it’s unpopular with landlords across the county, residents understand this is a good move,” he told today’s (Wednesday, December 19) County Hall cabinet meeting.

A full council meeting is expected to rubberstamp the scheme on Wednesday, January 9. If this happens, it would be reviewed in September.

The Government is localising council tax from April and cutting the grants by which council tax benefit is paid by ten per cent, leaving County Durham facing a £5.5m shortfall.

Meanwhile, Shildon West councillor Garry Huntington claimed wider council tax changes would see the county’s town and parish councils lose nearly £800,000 a year – £246,000 through the abolition of double taxation grants, aimed at preventing households paying twice for some public services through both county and town or parish councils, and £553,000 through other technical reforms.

This would have a colossal impact, Coun Huntington said, and he asked for double taxation grants, currently paid to 69 parish and town councils, to be saved for another year.

Council leader Simon Henig said the authority would help town and parish councils where possible, including by passing on their share of the Local Council Tax Support Scheme grant, expected to be about £2.3m, in full.