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.
Reasons for the decision:
The report arose as a result of the Local Government Finance Bill 2012 which required 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 |