Agenda item

(Finance Portfolio Holder) To consider the attached report (C-007-2017/18).

(1)       That a public consultation exercise on the Local Council Tax Support Scheme for 2018/19 be undertaken between August and October 2017; and

(2)       That the following elements of the scheme be approved for consultation purposes:

(a)       the acceptance of the general principle that the Local Council Tax Support Scheme for 2017/18 should aim to be cost neutral for the Council;

(b)       to seek views on alternative funding options for the Local Council Tax Support Scheme, if the Scheme is not cost neutral;

(c)       the disregard of Bereavement Support Payment in the calculation in line with other welfare reforms;

(d)       the introduction of technical changes relating to the assessment of Universal Credit income to allow for Local Council Tax Support to be awarded for a fixed period of six months before a review is undertaken; and

(e)       a revision to the scheme in order to prevent an excess Council Tax discount being awarded, that would enable the Council, where appropriate, to decide the income to use in the calculation irrespective of any notification from the Secretary of State for Work and Pensions.

In the absence from the meeting of the Finance Portfolio Holder, Councillor G. Mohindra, the Chairman presented a report on the Council’s Local Council Tax Support Scheme for 2018/19.

The Cabinet was reminded that the Council had adopted its current Local Council Tax Support Scheme in December 2016 and that consideration was now required to be given to the Scheme for 2018/19, in order that it could be approved by the Council in December 2017 and implemented by 31 January 2018. The Chairman reported that it was necessary to undertake annual public consultation on the Scheme prior to its adoption and that, as the Scheme had to be in place by the end of January 2018, it would therefore be necessary for such consultation to be undertaken between August and October 2017. The Cabinet noted that historically there had been a low level of response to consultation on the Scheme and that there appeared to be a general acceptance by most residents that they needed to pay some portion of their annual Council Tax.

The Assistant Director of Resources (Benefits) advised the Cabinet that the consultation exercise would be undertaken by appropriate means to ensure that it was as inclusive as possible. The Director of Resources undertook to ensure that the consultation was unambiguous in its reference to the operation of the Local Council Tax Support Scheme being cost neutral to the Council and that any alternative funding options proposed for the Scheme as a result of the public consultation, should be based on the identification of relevant costs and priorities.

RESOLVED:

(1)       That a public consultation exercise on the Local Council Tax Support Scheme for 2018/19 be undertaken between August and October 2017; and

(2)       That the following elements of the scheme be approved for consultation purposes:

(a)       the acceptance of the general principle that the Scheme should aim to be cost neutral for the Council;

(b)       to seek views on alternative funding options for the Scheme, if it is not cost neutral;

(c)       the disregard of Bereavement Support Payment in the calculation of Local Council Tax Support, in line with other welfare reforms;

(d)       the introduction of technical changes relating to the assessment of Universal Credit income to allow for Local Council Tax Support to be awarded for a fixed period of six months before a review is undertaken; and

(e)       a revision to the Scheme in order to prevent an excess Council Tax discount being awarded, that would enable the Council, where appropriate, to decide the income to use in the calculation of Local Council Tax Support irrespective of any notification from the Secretary of State for Work and Pensions.

Reasons for Decision:

The judgement in the case of R v London Borough of Haringey (29 October 2014) had highlighted the requirement for local authorities to consult on Local Council Tax Support Schemes on an annual basis, regardless of whether it was intended to make changes to a Scheme. The judgement had additionally made it clear that local authorities also needed to consult on how a Scheme was to be funded and that respondents should have an opportunity to comment on whether Schemes should be cost neutral, or, if not, whether they should be funded by making cuts to the Scheme itself, an increase in Council Tax, a reduction in other services, or through the use of reserves.

In order that the Local Council Tax Support Scheme could be approved by the Council in December 2017, the consultation needed to be undertaken between August and October 2017. If consultation was commenced any later, it would not be possible to complete the exercise and make any amendments to the scheme in time for it to be agreed by the Cabinet in December 2017.

Other Options Considered and Rejected:

The Cabinet could have decided not to carry out a consultation exercise in relation to the Local Council Tax Support Scheme for 2018/19, or to undertake consultation only in regard to potential changes to the Scheme, rather than its funding. However, in view of the judgement contained in R v London Borough of Haringey, the Cabinet did not consider that these options were appropriate.