Agenda item

To consider Report No. FIN1801 (copy attached), regarding responses to the public consultation and the recommendation to the Council of an amended Scheme for the 2018/19 financial year and changes to the level of discount allowed for certain empty properties.

The Cabinet considered Report No. FIN1801, which set out the outcome of the recent public consultation exercise and the recommendations and comments of the Council’s Welfare Reform Task and Finish Group in respect of potential changes to the Council Tax Support Scheme and to the level of discounts allowed against Council Tax for certain empty properties. The Chairman welcomed Cr. A.H. Crawford, who had requested to address the Cabinet on this issue.

Members were reminded that the Council had been running its own Council Tax Support Scheme since 2013, replacing the previous national Council Tax Benefit Regulations. The recent public consultation exercise had run for six weeks, starting on 6th November, 2017, and had been carried out, primarily, using an online survey.  A total of 482 responses had been received and a detailed consultation report was set out in Appendix 1 to the Report. It was noted that this level of responses was considerably higher than in previous years.

The Welfare Reform Task and Finish Group had continued to meet during 2017 and had met most recently in December 2017 to consider the consultation responses. The Group had recommended three changes to the Council Tax Support Scheme and two changes to the level of Council Tax discounts in relation to empty properties, summarised as:

·                    To increase the minimum amount of Council Tax that working age people would pay from 10% (90% discount) to 15% (85% discount) for 2018/19 and to hold the minimum contribution at that level for 2019/20

·                    To exclude the new bereavement support payment when calculating Council Tax support

·                    To limit the number of dependent children to two when calculating Council Tax support

·                    To award 50% discount for six months for homes that were having major repairs or structural alterations done to them (currently twelve months)

·                    To award 100% discount for two months for homes that were unoccupied and unfurnished (currently three months)

In discussing the recommendations, it was proposed that, to make any increases more affordable, it would be fairer to phase these over two years as opposed to one. It was, therefore, proposed that an increase to 12% should be implemented in 2018/19 and, subject to analysis of the impact of this increase on recipients, the contribution should be increased to 15% from 2019/20.

Cr. Crawford expressed opposition to any increase of the minimum contribution from 10% and requested that the Cabinet should delay any increase until the impact of the rollout of Universal Credit was known. He also expressed concern in relation to the content of the consultation document issued by the Council.

The Cabinet discussed the proposals and considered that it was appropriate to increase the level of contribution payable in order to protect other Council Tax payers in the Borough, especially those on low incomes. Members agreed, however, that the increase to a contribution of 15% should be phased over two years, with the impacts of the increases being closely monitored by the Council.

The Cabinet RECOMMENDED TO THE EXTRAORDINARY MEETING OF THE COUNCIL ON 30TH JANUARY, 2018 that the following changes to the Council Tax Support Scheme and the level of Council Tax discounts, as set out in Report No. FIN1801 and amended at the meeting, be approved:

(i)           to increase the current 10% minimum contribution (90% discount) for those of working age to 12% minimum contribution (88% discount) for 2018/19;

(ii)          to set the minimum contribution at 15% for the subsequent year (2019/20) to allow sufficient time to consider the impact of the increase on residents;

(iii)         to exclude bereavement support payments from the calculation of Council Tax Support from 2018/19;

(iv)         to limit the number of dependent children to two when calculating Council Tax Support from 2018/19;

(v)          to change the level of discounts given for homes that are empty due to undergoing major repairs or structural alterations from a 50% discount for twelve months to a 50% discount for six months; and

(vi)         to change the level of discounts given for homes that are unoccupied and unfurnished from a 100% discount for 3 months to a 100% discount for 2 months.