Issue - meetings

(See report at agenda item 6 (pages 23 to 26) of the Cabinet agenda of 1 November 2016 and pages 69 to 115 in the supplement to the agenda)

RECOMMENDED BY THE CABINET

That the Council Tax Reduction Scheme for 2017-2018 be approved.

Mrs Hardwick (Cabinet Member for Finance & Governance Services), seconded by Mrs Taylor, moved these recommendations to the Council.

Mrs Hardwick introduced the report. The Welfare Reform Act and Local Government Finance Acts of 2012 abolished the national council tax benefit scheme and put in place a framework for local authorities to create their own local council tax reduction (CTR) schemes from 1 April 2013. The Government legislated that people of pensionable age would continue to receive support based on national rules (prescribed regulations). The Council’s scheme encompassed both pensioners (over which the Council had discretion only to improve the statutory provision) and working age claims (over which the Council had complete discretion as to how to draw up its scheme).

The Government had laid down the process by which a local council tax reduction scheme could be put in place and renewed each year. In accordance with that process, officers had consulted WSCC, Sussex Police, stakeholders and the community and prepared the recommended scheme which needed to be approved by the Council before 31 January 2017 failing which the previous year’s scheme would continue to have effect.

The cost of the scheme was by way of deduction from the tax base and shared between all precepting authorities. This Council’s share was approximately 9% of the total scheme cost, with the rest funded by Sussex Police, West Sussex County Council and the Parish Councils.

RESOLVED

That the CouncilTax ReductionScheme for2017-2018 beapproved.

The Cabinet is requested to consider the agenda report and its two appendices and to make the following recommendation to the Council:

That the Council Tax Reduction Scheme for 2017-2018 be approved.

RECOMMENDED TO THE COUNCIL

That the Council approves the Council Tax Reduction Scheme for 2017-2018.

The Cabinet considered the agenda report and its two appendices in the separate appendix bundle (copies attached to the official minutes).

The report was presented by Mrs Hardwick.

Mrs Christie and Mrs Rogers were in attendance for this item.

Mrs Hardwick said that in July 2016 the Cabinet had approved a consultation on the Council Tax Reduction Scheme (CTRS) for 2017-2018. A localised rather than a national CTRS for working age people had been in force since 1 April 2013 (pensioners continued to receive support in accordance with national rules). CDC’s CTRS had remained unchanged since then and in 2016-2017 it cost £6.6m. Although initially funded out of the central government grant, the CTRS was now funded by the overall government revenue support. CDC was required to undertake an annual consultation on CTR. The outcome of the 2016 consultation with stakeholders and the public was set out in section 8 of and appendix 2 to the report. The consultation covered adjusting either the qualifying property bands or the percentage reduction across all recipients. The table on page 24 of the report showed the effects of (a) restricting entitlement to bands C or D (individuals making up the shortfall on higher value properties themselves) and (b) on overall tax revenue by limiting the reductions across all recipients by either 5% or 10% (each claimant would be required to make up the shortfall). The CTRS provided a very important safety net for those on low incomes but it needed to remain well targeted, minimise disincentives to work and provide the best value for money for the benefit of all council tax payers. The details of the CTRS appeared in pages 69 to 115 of the appendix bundle; they included protections for war widow and widower pensions, war disablement pensions and maintaining work incentives in the form of earned income disregards and a taper for removing support. Para 3.5 of the report explained how the cost of the CTRS was shared (CDC’s share was about 9% of the total cost). As a result of the review and consultation it was proposed to base the 2017-2018 scheme on the current one and make no restrictions given the relatively modest savings and potential hardship to individuals the changes might cause. The proposal required the approval of the Council meeting before 31 January 2017.

Mrs Christie did not wish to add to Mrs Hardwick’s presentation. She answered questions by Mrs Keegan with regard to the CTRS cap for anyone with capital of more than £16,000 and the national scheme for those for pensionable age.

Mr Dignum concluded the debate by emphasising the imperative of protecting the most vulnerable in society (no major changes were proposed to the CTRS for 2017-2018) and that CDC was the only local authority in West Sussex which had not made cuts thereto. He commended it to the Cabinet.  

Decision

The Cabinet voted unanimously by a show of hands in favour of the recommendation in para 2.1 of the report.   

RECOMMENDED TO  ...  view the full minutes text for item 278