Agenda item
Local Council Tax Support Scheme and Changes to Council Tax Discounts and Exemptions
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 11th June and 10th 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 1st 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.
Minutes:
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 adopt the Government’s fall-back scheme.
The suggested amendments to the scheme were rejected on a vote.
RESOLVED:
(i) that the making and implementation of the recommended Council Tax Support Scheme as set out in section 5 and Appendix H of the report circulated be supported and authorised;
(ii) that the recommended discounts for the Council Tax Discount and Exemption classes to come into effect from 1st April 2013 as set out in paragraphs 10.1, 10.2 and Table 15 of the report circulated be supported and authorised;
(iii) that the response for the Council to reject the Government’s conditional offer to accept a transition grant for the Council Tax Support Scheme be approved for the reasons set out in section 4.16 to section 4.23 and Appendix F of the report circulated;
(iv) that the findings on equalities and other impacts arising from the proposed Council Tax Scheme as set out in Section 5 of the report circulated be noted;
(v) that the findings of the Equalities Impact Assessment in relation to the recommended changes to the Council Tax discounts and exemptions as set out in Section 10 of the report circulated be noted;
(vi) that the alternative scheme options that existed be noted, in particular the transition funding since made available to Local Authorities that designed their schemes to be compliant with certain key requirements prescribed by the Government as set out in their transitional grant scheme dated 18 October 2012.
Supporting documents:
- CTS report, item 4. PDF 2 MB
- Appendix A Consultation Report, item 4. PDF 6 MB
- Appendix A1 Draft CTS scheme, item 4. PDF 411 KB
- Appendix A2 Letter to stakeholders, item 4. PDF 98 KB
- Appendix A3 Consultation Questionnaire, item 4. PDF 893 KB
- Appendix A4 ACF Q&A, item 4. PDF 95 KB
- Appendix A5 Vol Sector SUFC, item 4. PDF 52 KB
- Appendix A6 Consultation Report Responses, item 4. PDF 645 KB
- Appendix B - Scheme options considered, item 4. PDF 76 KB
- Appendix C - Financial modelling, item 4. PDF 62 KB
- Appendix D - CTS EIA, item 4. PDF 207 KB
- Appendix D1 Council Tax Benefit Background, item 4. PDF 36 KB
- Appendix D2 Equality Strand Analysis, item 4. PDF 902 KB
- Appendix D3 Equality Strand Analysis including CA, item 4. PDF 167 KB
- Appendix E - Timetable, item 4. PDF 38 KB
- Appendix F - Government Offer of Transition Grant, item 4. PDF 91 KB
- Appendix G - CTAX discounts EIA, item 4. PDF 95 KB
- Appendix H - Proposed Local CTS Scheme, item 4. PDF 14 KB
- Appendix H - CT Scheme, item 4. PDF 1 MB