Agenda and minutes

None declared.

Councillor S Choudhary moved a procedural motion relating to discussion of the business at the meeting.

RESOLVED:

that in respect of Summons item 3 – Local Council Tax Support Scheme and Changes to Council Tax Discounts and Exemptions:

The Leader be permitted up to 10 minutes in which to present the report;

Members be given the opportunity to ask questions for clarity;

A general debate to follow for up to 30 minutes in accordance with the normal rules set out in Standing Order 44(b).

None.

This report sets out the findings and outcomes of the consultation arrangements for the proposed local Council Tax Support Scheme carried out over a nine week period between 11^th June and 10^th August 2012.  It recommends a scheme for a new local Council Tax Support scheme based upon the outcomes from the consultation process and achieving, as far as reasonably practicable, a financially neutral position in 2013/14 (the first year of operation).  The report also recommends changes to Council Tax discounts and exemptions from 1^st April 2013 for certain classes of empty properties. The financial and equality impacts of the recommended scheme for Brent residents and the changes to Council Tax discounts and exemptions are attached.

Members had before them the circulated report which set out the findings and outcomes of the consultation arrangements for the proposed local Council Tax Support Scheme carried out over a nine week period between 11 June and 10 August 2012.  The report recommended a scheme for a new local Council Tax Support scheme based upon the outcomes from the consultation process and achieving, as far as reasonably practicable, a financially neutral position in 2013/14 (the first year of operation). 

The report also recommended changes to Council Tax discounts and exemptions from 1 April 2013 for certain classes of empty properties.

Attached to the report were the financial and equality impacts of the recommended scheme and changes to the discounts and exemptions

Councillor Butt (Leader) introduced the report.  He criticised the Government’s proposals for replacing the current national Council Tax benefit scheme by a localised Council Tax support scheme.  Despite a cut in funding passed on by the Government equalling a loss of between £3.9M to £5.1M, a scheme was proposed that was as fair as possible and protected the most vulnerable people in the borough. It was also designed to incentivise work.  However, it had been necessary to ask some people to pay more in order to meet the funding shortfall.  Councillor Butt pointed out that there remained the risk associated with collecting money from people not able to afford it.

During questioning it was explained that a collection rate of 80% had been set as a realistic target in the circumstances.  It was acknowledged that some people would find it hard to pay and the scheme tried to provide fairness in requiring all those liable to pay a fair charge.  Despite a plea for the levy on the job seekers allowance to be reviewed it was stated that this would not have been imposed if the Government had not reduced the funding made available and stipulated some groups that had to be protected.  The same applied to pensioners some of whom, despite the scheme being designed to protect them, would face financial hardship.  It was argued that the scheme did not need to provide for a surplus because the Council already had sufficient reserves.  The Leader stated that this was normal good financial planning because if the collection rate was not achieved so the surplus would reduce. 

Councillor Lorber re-iterated that the budgeted surplus was unnecessary and if the collection rate was not achieved that would reflect on the performance of the Council, not individual tax payers.  He moved amendments to the scheme which sought to adjust upwards the savings cut-off, protect non-dependents in receipt of job seekers allowance for the first twelve months from their first claim and set a lower minimum contribution rate.

Councillor Kansagra stated that it was always claimed to be the fault of the Government when the present position was down to the previous Labour government.  He felt the poorest were being hit instead of dealing with wastage and suggested the Council should  ...  view the full minutes text for item 4.

None.