The Head of Financial Services has submitted a report to Cabinet on 22 January 2020 which considers the feedback from the recent consultation on the proposed changes to the Local Council Tax Reduction Scheme and to proposes the principles of the new scheme to be drawn up for approval by Council on 27th January.

Cabinet’s decision will be reported to Council.

Councillor Turner, the Cabinet Member for Finance and Asset Management, will present the report.

Recommendations: Cabinet recommends that Council:

1.     Resolves to adopt the new Local Council Tax Reduction Scheme for 2020/21.

Council considered a report from the Head of Financial Services which had been submitted to Cabinet on 22 January 2020 which considered the feedback from the recent consultation on the proposed changes to the Local Council Tax Reduction Scheme and proposed the principles of the new scheme to be drawn up for approval by Council on 27 January 2020.

Cabinet Member for Supporting Local Communities, presented the report. She informed Council that the recommendations set out in the report had been agreed by Cabinet.

During the debate Councillor Tidball undertook to provide a written response to Councillor Landell Mills on the details of the income review process for individuals and also to confirm whether neighbouring local authorities retain the 100% level of entitlement.

Councillor Tidball moved the recommendation, which was agreed on being seconded and put to the vote.

Council resolved to adopt the new Local Council Tax Reduction Scheme for 2020/21.

Councillor Howlett arrived during this item.

The Head of Financial Services has submitted a report to consider the feedback from the recent consultation on the proposed changes to the Local Council Tax Reduction Scheme and to agree the principles of the new scheme to be drawn up for approval by Council on 27th January.

Recommendations: That Cabinet 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 2020/21 in accordance with paragraphs 6-9 of this report, so that it can be submitted to Council for approval at its meeting on the 27th January 2020; and

3.    Recommend Council to resolve to adopt the new Local Council Tax Reduction Scheme for 2020/21.

The Head of Financial Services had submitted a report to consider feedback from the recent consultation on the proposed changes to the Local Council Tax Reduction Scheme and to agree the principles of the new scheme to be drawn up for approval by Council on 27 January 2020.

Councillor Marie Tidball, Cabinet Member for Supporting Local Communities, introduced the report, drawing particular attention to the three changes originally  proposed and the subsequent outcome of the consultation. The following changes to the scheme would be introduced: changes that affect Council Tax Reduction (CTR) to be applied from the date of the claim (rather than the following Monday); and, leaving a CTR claim open for 6 months while there is a Universal Credit application in place. The proposal to introduce a banded income approach for working age claimants would not, however, be introduced yet but would be considered when preparing a scheme for 2021/22. She reminded the Cabinet that the Council was one of the few which still provided a scheme which, in some circumstances, would accept 100% liability for Council Tax, a clear demonstration of its commitment to financial inclusion.

Laura Bessell, the Benefits Manager, confirmed that all respondents to the consultation had been replied to. In relation to future proposals for banding, she said that no options had been ruled out and it could be devised in many and various ways, something which would be facilitated by the forthcoming introduction of a new computer system.  Any proposals would be underpinned by a rigorous Equality Impact Assessment to evaluate which options offered the greatest beneficial impact.

Cabinet 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 2020/21 in accordance with paragraphs 6-9 of this report, so that it can be submitted to Council for approval at its meeting on  27 January 2020; and

3.    Recommend Council to resolve to adopt the new Local Council Tax Reduction Scheme for 2020/21.

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 2020/21.

Recommendations:That  Cabinet resolves to:

1.    Agree that the proposals for the 2020/21 Council Tax Reduction Scheme outlined in the report be subject to consultation for an 8 week period from 23rd September 2019; and

2.    Instruct the Head of Financial Services to bring a further report to Cabinet in January 2020 to outline the outcome of the consultation process and make proposals for the 2020/21 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 (CTRS) for 2020/21.

Marie Tidball, Cabinet Member for Supporting Local Communities, introduced the report which set out the basis for consultation on the CTRS for 2020/21. Reduction of the Revenue Support  Grant to zero meant there was, now, no government funding to support the scheme. The estimated cost of the scheme for the Council in 2020/21 was £1.7m. The report detailed a number of minor changes for 2020/21, which would benefit a number of applicants for relatively little cost. 

Laura Bessell, Benefits Manager, noted that the Council was one of only 30 in the country which continued to offer the opportunity for a discount of 100%.

The Chair noted the continuing importance of the scheme as part of the Council’s commitment to supporting those on low incomes.

Cabinet resolved to:

1.         Agree that the proposals for the 2020/21 Council Tax Reduction Scheme outlined in the report be subject to consultation for an 8 week period from 23rd September 2019; and

2.         Instruct the Head of Financial Services to bring a further report to Cabinet in January 2020 to outline the outcome of the consultation process and make proposals for the 2020/21 Council Tax Reduction Scheme.

This report seeks approval for proposals for consultation on changes to the Council’s Council Tax Reduction Scheme for 2020/21.

James Pickering, Welfare Reform Manager, will present and be available to answer any questions.

Cabinet on 11 September 2019 will be recommended to:

1)    Agree that the proposals for the 2020/21 Council Tax Reduction Scheme outlined in the report be subject to consultation for an 8 week period from 23rd September 2019; and

2)    Instruct the Head of Financial Services to bring a further report to Cabinet in January 2020 to outline the outcome of the consultation process and make proposals for the 2020/21 Council Tax Reduction Scheme.

With the agreement of the Panel the order of the agenda was changed to consider item 6, the Council Tax Reduction Scheme 2020/21 before item 5, the Treasury Management Strategy: Annual Report and Performance 2018/19.

The Panel considered a report presented by the Cabinet Member for Supporting Local Communities, Councillor Marie Tidball, and supported by the Welfare Reform Manager on the proposals to go out for consultation regarding changes to the Council’s Council Tax Reduction Scheme for 2020/21. In introducing the report Councillor Tidball drew out a number of key issues around the Council’s scheme to support those unable to cover the cost of Council Tax:

·         That the previous Central Government provided funding towards the Council Tax Reduction Scheme, the Revenue Support Grant, had been phased out meaning the Council no longer received financial support from Central Government towards the scheme

·         The cost to the Council of the scheme for the financial year 2020/21 was anticipated to be £1.7 million, but would be dependent on external factors such as the level of Council Tax

·         Monitoring of previous changes to the Council Tax Reduction Scheme around instituting a minimum income floor for self-employed claimants had not shown an increase in costs, but the change had been positive for those impacted and basing discounts on actual rather than assumed earnings was an equitable policy position

The changes proposed for consultation were in relation to:

·         Changes that to enable the Council Tax Reduction to be applied from the date of the claim, rather than the Monday after the change.

·         Leaving a Council Tax Reduction claim open for six months whilst there is a Universal Credit application in place.

·         Whether or not to introduce a banded income approach for working age claimants, in the same way as UC claimants are treated, from 2021/22.

Councillors raised a number of questions as the practicalities of the Council Tax Reduction Scheme and how it operated alongside other Council Tax discounts, such as the Single Person’s Discount. It was suggested by the Panel that the subject could be usefully addressed at a forthcoming Member Briefing.

Further discussion focused on the size of the Council’s discretionary support, whereby the Council had the right to waive Council Tax in certain circumstances outside the Council Tax Reduction Scheme. It was noted by Councillors that the discretionary support liability would fall exclusively on the Council rather than being apportioned pro rata amongst the preceptors as under the Council Tax Reduction Scheme, meaning write-offs would form 100% of the Council Tax expected, rather than 15.7%. Whilst known to be relatively small it was not possible at the Panel to confirm the budget for discretionary support, but the Head of Finance agreed to find out and circulate to Panel members. It was also encouraged that access of discretionary Council Tax support be monitored.

Responses to other questions confirmed that the Council had confidence that those eligible for the Council Tax Reduction Scheme were indeed claiming the reduction, and that the Council was aware that  ...  view the full minutes text for item 27