Issue - meetings

To set the taxbase for the 2016/17 financial year and agree grants to parish councils.

RESOLVED

(1)  That the council tax discounts to apply for the 2016/17 financial year are:-

(a)  Nil discount for second homes (to include those with planning restrictions – (Prescribed classes A & B))

(b)  Nil discount for vacant, unoccupied and substantially unfurnished properties to include those properties which would previously have qualified for Class C exemption (Prescribed class C)

(c)  100% discount for unoccupied properties which would previously have qualified for Class A exemption (properties in need of or undergoing major repair)

(2)That an Empty Home Premium of 50% be charged for the 2016/17 financial year.

(3)  That no additional locally defined classes of discount should be determined for the 2016/17 financial year.

(4)  In order to comply with Section 35 of the Local Government Finance Act 1992, that the following resolutions are made:

      i.         No item of expenditure shall be treated as “special expenses” for the purposes of Section 35 of the Local Government Finance Act 1992;

     ii.         This resolution shall remain in force for the 2016/17 financial year;

    iii.         The calculation of the Council’s taxbase for the year 2016/17 is approved;

   iv.         The amounts calculated by the Council as its council taxbase for the year 2016/17 for its area and each part of its area shall be those set out in appendices 1 and 2 to this report;

     v.         In order to offset some or all of the costs of Council Tax Reduction to local  precepting authorities (Parish Councils), a grant is distributed as outlined in appendix 3 and described in paragraphs 6.4 to 6.5 of this report.

The Cabinet considered the report circulated with the agenda (copy attached to the official minutes).

In the absence of Mrs Hardwick, Mr Dignum introduced the report. He reminded the Cabinet of its previous decisions on locally defined discounts, which were to be confirmed in recommendations 3.1 and 3.2. He drew attention to Appendix 1, which set out the numbers of properties in each category as Band D equivalents.  A Band D equivalent was the Council tax due on a Band D house, equating to about £1500.

·       The 10% discount for Second homes had been removed in 2011 and equated to 345 Band D equivalents, or about £0.5m.

·       The 50% empty Homes Premium yielded only 50 Band D equivalents, about £75,000.

·       The number of properties that had been empty and unfurnished for less than 6 months equated to 253 Band D equivalents.

·       The number of properties that had been empty and unfurnished and under structural repair for up to 12 months amounted to 76.6 Band D equivalents.

The Council made a grant to parish councils to offset their loss of tax base due to the discounts, set out in appendices 2 and 3. This grant was reduced each year in line with the reduction in funding the Council received from central government and for 2016/17 this was estimated at 10.9%.

RESOLVED

(1)  That the council tax discounts to apply for the 2016/17 financial year are:-

(a)  Nil discount for second homes (to include those with planning restrictions – (Prescribed classes A & B))

(b)  Nil discount for vacant, unoccupied and substantially unfurnished properties to include those properties which would previously have qualified for Class C exemption (Prescribed class C)

(c)  100% discount for unoccupied properties which would previously have qualified for Class A exemption (properties in need of or undergoing major repair)

(2)That an Empty Home Premium of 50% be charged for the 2016/17 financial year.

(3)  That no additional locally defined classes of discount should be determined for the 2016/17 financial year.

(4)  In order to comply with Section 35 of the Local Government Finance Act 1992, that the following resolutions are made:

      i.         No item of expenditure shall be treated as “special expenses” for the purposes of Section 35 of the Local Government Finance Act 1992;

     ii.         This resolution shall remain in force for the 2016/17 financial year;

    iii.         The calculation of the Council’s taxbase for the year 2016/17 is approved;

   iv.         The amounts calculated by the Council as its council taxbase for the year 2016/17 for its area and each part of its area shall be those set out in appendices 1 and 2 to this report;

     v.         In order to offset some or all of the costs of Council Tax Reduction to local  precepting authorities (Parish Councils), a grant is distributed as outlined in appendix 3 and described in paragraphs 6.4 to 6.5 of this report.

Further to minute 32 of 7 July 2015, and following consultation, to recommend the Council to approve a Council Tax Reduction Scheme for 2016/17.

RECOMMENDED TO COUNCIL

That the council tax reduction scheme for 2016/17 be approved.

Further to minute 32 of 7 July 2015, the Cabinet considered the report circulated with the agenda (copy attached to the official minutes).

Mrs Hardwick introduced the report, reminding the Cabinet that they had previously authorised consultation on a draft 2016/17 Council Tax reduction scheme. When the Government had abolished the national Council Tax Benefit scheme in April 2013, in favour of local authorities developing their own schemes, they had made a 10% cut in grant support for the scheme. Because pensioners were protected, this left the prospect of a 20% cut for working age claimants. However, in setting their scheme for 2013/14, the Council had decided to absorb the loss of grant and to protect working age claimants, who were among the poorest in society. The scheme had to be renewed each year, but as the fundamentals had not changed, it was recommended that the scheme should continue in the same way as in the current year, thus providing continuity and certainty to claimants. The actual amounts used to calculate the level of reduction would be amended to reflect changes in Housing Benefit, but these changes would not be known until after the Chancellor’s Autumn Statement.

Mrs Dring (Benefits Manager) added that a national debate was currently taking place on tax credit changes. If tax credits were reduced, council tax reduction claims would increase, although the size of the increase was not yet known. However, based on the number of prospective claimants and the sums involved, the proposed scheme for 2016/17 was thought to be affordable.

Mr Ward confirmed this, drawing attention to the reduction in predicted spend for 2015/16 reported in paragraph 7.2 of the report. However, he suggested a thorough review should take place of the scheme for 2017/18, when the effects of tax credit changes were known with greater certainty.

RECOMMENDED TO COUNCIL

That the council tax reduction scheme for 2016/17 be approved.