Agenda item

Localisation of Council Tax Support

Minutes:

Councillor Roger Ramsey, Cabinet Member for Value, introduced the report

 

At its meeting on 11 July 2012, Cabinet received a report which provided details of the Welfare Reform Act 2012 which will abolish the national Council tax Benefit scheme from April 2013. In addition, details were provided regarding the proposed Local Government Finance Bill which will enable Local Authorities to design their own local council tax support schemes.  That report set out 8 options with equalities implications set out for each option.

 

Cabinet Members considered eight options from which a local Council Tax Support Scheme could be developed and authorised consultation with the Greater London Authority (GLA) on these options with the Council’s preferred option being option eight.

 

It was noted that a report was presented to the Value Overview and Scrutiny committee on 31 July 2012 detailing the options for a new local scheme.

 

The report before Members sought a commitment to make Option Eight (the details of which can be found in the ‘Other Options considered’ section in this minute) the basis of the draft local council scheme from which consultation can commence with members of the public and affected persons.

 

Reasons for the decision:

The report arose as a result of the Local Government Finance Bill 2012 which requires the Council to design a Local Council Tax Support Scheme to support people who were liable to pay Council Tax and were in financial need.

 

Other options considered:

The options available were summarised below.

 

 

Option

Projected

Saving £

 

Impacts

1. Absorb 10% reduction into council financial reserves.

1.9 mil

No impact on Council Tax Benefit claimants or wider Council Tax

2. Restrict Council Tax liability to 80% for benefit purposes.

1.9 mil

All working age Council Tax Benefit claimants

3. Reduce Council Tax Benefit by 18%

1.8 mil

All working age Council Tax Benefit claimants

4. Restrict benefit  to average band D award, increase taper & non dependant deductions

1.8 mil

All working age Council Tax Benefit claimants, particularly those with non dependants in household.

5.  Restrict benefit  to average band D award, increase taper & non dependant deductions, reduce premiums

1.8 mil

All working age Council Tax Benefit claimants

6. Increase Council Tax in line with technical reforms.

1.8 mil

Direct impact on the wider Council Tax collection for residents with certain discounts and exemptions

7. Increase Council Tax for all tax payers by £22 per year.

1.85 mil

All residents in borough not claiming maximum CTS (approx 87,000)

8. Restrict benefit to band D, increase non dependant deductions, increase council tax for second homes in line with technical reforms.

1.8mil

Working age claimants who have non dependants or who reside in properties banded E to H. Also affects people who have second homes or homes that are not inhabited

 

Cabinet AGREED:

 

1.       The draft local council tax support scheme (set out in Appendix E to the report) and amendments to council tax discounts as summarised in Appendix A to the report for consultation with members of the public and other interested parties.

 

2.       To note the financial pressure of a £1.9 million reduction in government grant for council tax support in 2013/14.

 

Supporting documents: