The Head of Financial Services submitted a report to the City Executive Board on 22 January 2019 asking the Board to agree the principles of the new Local Council Tax Reduction scheme to be drawn up for approval by Council on 28 January 2019.

The report and relevant appendices are attached. The recommended changes to the current scheme are set out in Appendix 4.

Councillors are referred to the current Local Council Tax Reduction scheme (2018/19).

The minutes and recommendations of the City Executive Board meeting will be published and circulated with the briefing note.

Councillor Simm, Board Member for Supporting Local Communities, will present the report.

Recommendation: That Council resolves to

1. agree the changes to the Local Council Tax Reduction Scheme 2018/19 in the report to the City Executive Board (subject to the decision of the Board) set out in the Appendix and note the other changes set out in this agenda; and
2. adopt as the new Local Council Tax Reduction Scheme for 2019/20 the current Local Council Tax Reduction scheme for 2018/19 with the inclusion of the changes listed above; and
3. delegate authority to the Head of Financial Services to finalise and publish the new Council Tax Reduction Scheme for 2019/20.

Councillors Bely-Summers, Corais, Djafari-Marbini, and Gotch arrived just prior to the start of this item.

Council considered a report of the Head of Financial Services submitted to the City Executive Board on 22 January 2019. The City Executive Board recommended the proposed changes to the Council Tax Reduction Scheme to Council.

Councillor Simm, Board Member for Supporting Local Communities, presented the report and moved the recommendations which were adopted on being seconded and put to the vote.

Council resolved to

1.    agree the changes to the Local Council Tax Reduction Scheme 2018/19 in the report to the City Executive Board and set out in the Appendix to the report;and

2.    adopt as the new Local Council Tax Reduction Scheme for 2019/20 the current Local Council Tax Reduction scheme for 2018/19 with the inclusion of the changes listed in the report; and

3.    delegate authority to the Head of Financial Services to finalise and publish the new Council Tax Reduction Scheme for 2019/20.

The Head of Financial Services has submitted a report to consider feedback from the recent consultation on proposed changes to the Council Tax Support Scheme and to agree the principles of the new scheme to be drawn up for approval by Council on 28 January 2019.

Recommendations:That the City Executive Board resolves to:

1.Note the outcome of the consultation on the proposed Council Tax Reduction Scheme;

2.Delegate authority to the Head of Financial Services to draft the details of the new Council Tax Reduction Scheme for 2019/20 so that it can be submitted to Council for approval at its meeting on the 28 January 2019; and

3.Recommend Council to resolve to adopt the new Local Council Tax Reduction Scheme for 2019/20.

The Head of Financial Services had submitted a report to consider feedback from the recent consultation on proposed changes to the Council Tax Support Scheme and to agree the principles of the new scheme to be drawn up for approval by Council on 28 January 2019.

The Benefits Manager introduced the  report which noted the changes to the scheme as a result of the latest annual consultation. The consultation proposed just two changes to the scheme: uprating of the income banding (which determines the percentage discount received) and removal of the minimum floor for self-employed claimants.

The Chair noted how important the scheme was to protect the interests of poorer families and was pleased to see how the removal of the minimum income floor  would ameliorate a negative impact on some residents which hadn’t, originally, been understood.

The Board Member for Finance and Asset Management  noted that the number of authorities operating a council tax reduction scheme was dwindling but was pleased that Council was still committed to doing so.

The City Executive Board resolved to:

1.Note the outcome of the consultation on the proposed Council Tax Reduction Scheme;

2.Delegate authority to the Head of Financial Services to draft the details of the new Council Tax Reduction Scheme for 2019/20 so that it can be submitted to Council for approval at its meeting on the 28 January 2019; and

3.Recommend Council to resolve to adopt the new Local Council Tax Reduction Scheme for 2019/20.

To consider the proposed Council Tax Reduction Scheme and feedback from the public Consultation. This report will next be presented to the City Executive Board on 22 January, for subsequent recommendation to Full Council.

James Pickering, Welfare Reform Manager, explained that proposals to change the Council Tax Reduction Scheme (CTRS) this year were small. Only two proposals for change to the Scheme were submitted for public consultation. Both proposals related to reviewing measures which were introduced this financial year; the income band scheme for residents on Universal Credit, and the minimum income floor for self-employed people.

The report proposed that the income bands, for those who benefit from Council Tax discounts, should be up-rated annually in line with changes to the National Minimum Wage and the Oxford Living Wage, and that the benefit cap be uprated in line with inflation.

The Panel asked what aspects of the CTRS were unique to Oxford. It was explained that Oxford City Council was relatively generous in its discount offering when compared to other local authorities. There were no surprises in the responses received to the public consultation. The Panel were content to note the contents of the report, which would go to the City Executive Board on 22 January 2019. 

The Panel asked that the Department for Workplace Pensions spreadsheet concerning the social value formula be circulated to members, and that James Pickering be invited back to answer any questions in the future if required.

The Head of Financial Services has submitted a report to seek approval for proposals for consultation on changes to the Council’s Council Tax Reduction Scheme for 2019/20.

Recommendations:That the City Executive Board resolves to:

1.    Agree that the proposals for the 2019/20 Council Tax Reduction Scheme outlined in the report be subject to public consultation for an 8 week period from 24 September 2018; and

2.    Instruct the Head of Finance to bring a further report to the City Executive Board in January 2019 to outline the outcome of the consultation process and make proposals for the 2019/20 Council Tax Reduction Scheme.

The Head of Financial Services had submitted a report to seek approval for proposals for consultation on changes to the Council’s Council Tax Reduction Scheme for 2019/20.

Cllr Simm introduced the report,  drawing particular  attention to  the proposed consultation’s focus on the impact of the income band scheme for residents on Universal Credit and the minimum income floor for self-employed people.  She noted that the City Council was one of the few authorities to commit so wholeheartedly to a Council Tax Reduction Scheme.

The Chair welcomed the consultation and remind the Board that its cost to the Council was over £1.5m per annum, and represented  a major contribution to the Council’s commitment to inclusion.

The City Executive Board resolved to:

1.    Agree that the proposals for the 2019/20 Council Tax Reduction Scheme outlined in the report be subject to public consultation for an 8 week period from 24 September 2018; and

2.    Instruct the Head of Finance to bring a further report to the City Executive Board in January 2019 to outline the outcome of the consultation process and make proposals for the 2019/20 Council Tax Reduction Scheme.

This report seeks City Executive Board approval to consult on proposed changes to the Council’s Council Tax Reduction Scheme for 2019/20. 

The Council Tax Reduction Scheme benefits approximately 8,500 households at an estimated to cost the Council £1.4m for the current year and £1.7m from 2019/20.

The Scrutiny Committee has referred this item to Finance Panel for pre-decision scrutiny.  The Panel is asked to note and discuss the report and may wish to agree recommendations to the City Executive Board on 18 September 2018.

Paul Wilding, Revenue and Benefits Programme Manager, has been invited to present the report and answer questions.

The Revenue and Benefits Programme Manager, Paul Wilding, presented a report on the Council Tax Reduction Scheme 2019/20 consultation which was due for consideration by the City Executive Board on 18 September 2018. The report recommended that the proposed scheme be subject to public consultation, with a further report coming forward in January 2019 to summarise the outcome of the consultation process and make proposals for the 2019/20 Council Tax Reduction Scheme. The scheme would then need to be agreed by Full Council.

It was explained that the Council Tax Reduction Scheme (CTRS) benefits approximately 8,500 households at an estimated to cost the Council of £1.4m for the current year and £1.7m from 2019/20. Council Tax support was localised in 2013 and there had been no changes to the CTRS between 2013 and 2017. There were two changes proposed for the 2019/20 Scheme. These were:

·         the income band scheme for residents on Universal Credit, and;

·         the minimum income floor for self-employed people.

The cost of the CTRS was increasing year on year and there had been a significant reduction in government grant. Increasing the rate of collection did not necessarily mean more income would be generated, because there were costs associated with collecting and resolving additional arrears.

The Panel asked about the views of the other precepting authorities on the Council’s proposed CTRS. It was explained that Oxfordshire County Council and the Police and Crime Commissioner had historically supported the City Council’s decisions in relation to CTR, even though they had significant spending implications for the other authorities. A process of consulting these organisations was undertaken each year by the Revenue and Benefits Programme Manager.

In reviewing question 7 in the consultation document, set out below, the Panel suggested that the notion of an ‘established’ business was open to wide interpretation.

·         Question 7: Do you agree with the principle that the council should assume a minimum income level for CTR claimants who are self-employed once their business is established?

The Panel also suggested that question 9 in the consultation document, set out below, would benefit from listing examples of the type of answers people may want to give. This was part of a wider comment that the survey could be made more accessible for people not familiar with the CTRS terminology.

·         Question 9: There are practical limitations for increasing earnings form some type of self-employment (e.g. childminders). Should the Council exempt some types of self-employment from the MIF?

The Panel also questioned what weighting was given to questions 13, 14 and 15 in the survey, which set out alternatives to reducing the amount of CTR available. It was clarified that officers would take into account the consultation and advise councillors accordingly.

The Revenue and Benefits Programme Manager agreed that changes of this nature could be made to improve the survey. However, he said that he did not want the survey to limit the type of responses received. In promoting the CTRS consultation, the Council would use the Communications Team and  ...  view the full minutes text for item 87