South Kesteven District Council cancels veterans' tax break plan during Armed Forces Week

Discussions over launching a council tax discount for veterans have been stopped due to fears it could lead to discrimination claims.

However, South Kesteven District Council’s Armed Forces champion expressed disappointment, noting the council could have led by example.

The decision comes during Armed Forces Week, for which the council has a flag flying.

The authority considered a 5% or 10% council tax discount for employed veterans in Band A properties.

In a recent meeting, councillors also voted against including discount questions in the 2025-26 council tax support scheme consultation.

The decision marks a significant shift in the council's approach to supporting veterans, highlighting the complexity of ensuring fairness in local tax policies.

Council leader Ashley Baxter (Ind) raised concerns about the scheme’s feasibility and equity.

He argued that limiting the discount to employed veterans in Band A properties could exclude many veterans in greater need, such as those who are unemployed, retired, or living in different property bands.

He suggested this approach risked unfairness and discrimination.

“We have looked at this, we have looked at it again and looked at it again, and for the following reasons, it isn’t feasible,” he said.

“People on high wages would potentially be eligible, and people on low wages would not be eligible.

“I don’t think that the council should be taking money from people, whether it’s veterans or otherwise, taking resources away from people who are not well off and giving it to people who are far more wealthy.”

He added that the scheme would require several full-time employees to oversee and would be expensive to run.

Other authorities also had budget concerns about the scheme.

“I would recommend that you request no further work because the staff have put in an awful lot of work into doing the sums, trying to find how the eligibility would work if there were such a scheme, put an awful lot of time and effort into it and, in my opinion, the scheme doesn’t work,” said Coun Baxter.

Claire Moses, head of revenues and benefits at SKDC, reinforced these concerns by noting that over 50% of veterans might be excluded from the scheme due to their employment status.

She emphasised the need for a more inclusive approach to support veterans.

A last-minute bid, put forward by Coun Mark Whittington (Con), aimed to put the question to voters through the yearly discount consultation; however, this was voted down.

Mrs Moses also referenced last year’s consultation, where 70.3% of respondents favoured a veterans’ discount, though opinions varied on the level of discount, with suggestions ranging from 5% to 25%.

South Kesteven District Council is a part of the Armed Forces Covenant, and councillors were keen to highlight that support for veterans includes mental health meetings and other tax discounts.

Councillor Tim Harrison (Ind) said veterans he had spoken to had said they were “not interested” in getting the discount.

The initiative aimed to honour the Armed Forces Covenant and support local veterans.

Despite strong arguments from supporters like Coun Richard Dixon-Warren (Con), SKDC’s Armed Forces champion, he committee voted down the scheme.

Coun Dixon-Warren, who is also the chairperson of the Lincolnshire Armed Forces Community, urged the committee to proceed with the consultation, stressing the importance of supporting veterans and the extensive cost analysis already conducted.

He said he had been delighted when the proposal to explore extending the discount had been approved and praised the work staff had done.

“The proposal showed fine initiative and reflected SKDC’s commitment to honour the Armed Forces Covenant and support the Armed Forces community.”

However, he said it had been met with “visceral resistance” from the off, “in meetings, emails and in social media exchanges”.

“This was resistance that disregarded the fact that 70.3% of those who responded to the consultation agreed with the introduction of a veteran’s council tax discount against 17.5% who did not, resistance that ignored the fact that it is the views of those who respond to surveys that count however many or few, not those who do not, resistance that looked for ways to implement the proposal as it was developed rather than ways to make it work.”

“I was deeply dismayed by the recommendation that no further work be undertaken on the development of a council tax support scheme for veterans. It would not be the only scheme that applies to some people and not others, nor would it be the first to be complex, convoluted and difficult to understand.”

He highlighted that the proposal had received “excellent” praise from the MOD’s own Armed Forces Covenant team and the chairperson of the East Midlands Veterans Advisory and Pensions Committee, who had called it “laudable”.

“Approval would send a very strong signal about how important the veteran community is perceived to be in the district. Stifling the scheme now would, I suspect, send an equally strong signal,” he concluded.

The Armed Forces Covenant ensures fair treatment for those who serve.

Some key support available under the Armed Forces Covenant includes ensuring that veterans have access to healthcare and housing support, as well as help with education and employment.

The covenant aims to provide veterans with the same level of access to public and commercial services as the civilian population.

It also looks to recognise and address any disadvantages that veterans face in accessing public and private services.