Agenda item

The Cabinet considered a report which gave details of the outcome of the recent public consultation on possible changes to the Local Council Tax Support Scheme and requested Members to consider any subsequent changes to the Scheme.

Officers and Members referred briefly  to the background to this matter which was set out fully within the report and the need to address the potential funding gap for this Council of approximately £45,000 for 2015/16. It was noted that Worcestershire County Council had indicated their intention, if necessary, to again “claw back” from this Council any shortfall to cover their funding gap through reductions in funding for the Essential Living Fund and other services as they had done in the previous year.

Members were reminded that Local Council Tax Schemes are required to protect pensionable age claimants and to incentivise work for working age claimants.

Details were given of the preliminary public consultation which had been  undertaken between 1st September and 10th October 2014. This had included statutory consultation with major preceptors and other stakeholders and a full public consultation setting out possible options for change and requesting views on the various options.

The public consultation had included an online survey open to all residents and a direct mailshot to 6,352 households. Checks had been made to ensure that the proportion of Local Council Tax Claimants within the sample was representative of the District as a whole. It was noted that 491 responses had been received from members of the public.

Officers also drew attention to responses received from  Worcestershire County Council, Bromsgrove District Housing Trust and the Chair of Bromsgrove District Housing Trust’s Tenants Panel.

The full results of the public consultation as included within Appendix 1 of the report were noted.

Members attention was also drawn to the recent Supreme Court Judgement given on 29th October 2014 which considered the manner and nature of statutory consultation regarding changes to Council Tax Support Schemes. Full details had been included in the supplementary report to Cabinet. It was reported that as a result of the judgement, the statutory consultation with interested parties  referred to in section 3.42 of the report, would now include a mailshot to all current working age Council Tax Support Scheme claimants.

In addition, it was proposed that the consultation include possible alternative options for the Council to absorb the shortfall in its budgets, such as raising Council Tax, reducing Council services and using the compensatory savings to fund Council Tax Support or a combination of the two options.

Cabinet welcomed the receipt of the Supreme Court judgement which had helped to clarify a complex legal situation and would enable this Council to amend details of the proposed statutory consultation process in respect of the Draft Scheme accordingly.

Members then considered the options for change to the Council Tax Support Scheme as set out in Appendix 3 to the report and recognised the potential impact of changes on those working age residents who are on a low income. It was noted that officers would be working to use a range of options available to provide transitional support including the setting up of a small Hardship Fund.

Members also noted the tight timetable for consideration of the Scheme which had to be finalised and published by 31st January 2015. Due to the work required to prepare the regulations and guidance, the Scheme was required to be agreed in early January 2015.

Following discussion it was

RESOLVED:

(a)       that the outcome of the initial statutory consultation on options for changes to the Local Council Tax Scheme be noted;

(b)       that the current Scheme be amended as follows:

(i)         entitlement to Council Tax Support be capped at 80% of Council Tax liability so that all working age claimants will pay a minimum of 20% towards their Council Tax liability;

(ii)        the provision of second adult rebate be removed; and

(iii)       non-dependents’ income be taken into account

(c)        that authority be delegated to the Head of Customer Access and Financial Support to carry out the next phase of consultation on the Draft Scheme;

(d)       that authority be delegated to the Head of Customer Access and Financial Support to develop a Hardship Fund Policy to provide transitional support for liable persons assessed to be in financial hardship as a result of the changes to Local Tax Support; and

(e)       that in relation to uprating, it be noted that this will apply regardless of any other changes made under (b) above , and that delegated authority be granted to the Head of Customer Access and Financial Support to incorporate the necessary changes to bring uprating into effect into the Scheme.       

(In view of the response of the Worcestershire County Council which was included as an Appendix to the report Councillor C. B. Taylor requested that it be noted that he was also a Member of that Authority.)