Issue - meetings

The Cabinet considered a report on the proposals for the Localisation of Council Tax Support and on the additional funding made available to reduce the impact of these changes from 1st April 2013.

It was noted that billing authorities were required to adopt a new scheme for Council Tax Support by 31st January 2013. Members were reminded that it had been agreed to undertake a public consultation on the proposed local scheme for Council Tax Support in September 2012. The proposed changes were set out in paragraph 3.6 of the report:

• Limiting Support to Band D Council Tax Levels;
• Short term (up to 6 months) empty property Class C Exemption – reduce from current 100% to 50%;
• Reduce discount on second homes to nil

Only one response had been received to the consultation which did not reflect a negative position in respect of the proposals.

It was reported that during the consultation period the Department of Communities and Local Government had made available additional funding of £100 million for 2013/2014 to help mitigate the impact on working age claims. This grant would only be available if benefit was not reduced by more than 8.5% (which would be the case if Benefit was limited to Band D Council Tax levels). The proposal had therefore been revised to defer the limiting of Band D Benefit and receive the Government grant of approximately £16,000. This was to be the only change to Council tax benefit and therefore it was noted that there would not be a replacement scheme required.

Members requested clarification on whether exemption would apply in respect of instances where homes were left empty for reasons beyond the control of the former occupants.

RECOMMENDED:

(a)       that the exemption scheme be amended to limit discount in respect of short term empty property Class C to 50%; and

(b)       that the discount on second homes be removed.   

RESOLVED:

(a)       that there will not be a replacement scheme for Council Tax Benefit from April 2013; and

(b)       that the financial impact of the changes be noted together with the requirement for a more fundamental review of local Council Tax support from 2014/2015.