Agenda item - Council Tax Reduction Review

Extract from the proceedings of the Policy & Resources Committee meeting held on the 3^rd December 2015 (copy to follow), together with a report of the Interim Executive Director for Finance & Resources (copy attached).

64.1         Councillor Hamilton introduced the report which outlined the recommendations resulting from a review of the Council Tax Reduction (CTR) scheme that had been introduced in April 2013.  He noted that there was a need to review the scheme annually and as things stood there would be a shortfall of £3.6m in 2016/17 to fund the scheme if no action was taken.  As such it was recommended that those people on CTR should receive an 80% discount on their council tax, resulting in the minimum contribution people of working age pay towards their council tax would change from 15% to 20%.  This would result in an increase on average of 97p week and would be capped at £1.65 per week.

64.2         Councillor Sykes stated that it was a complex matter and suggested that had action been taken in previous budgets it would not be necessary to increase the minimum contribution from 15% to 20% and affect the most vulnerable in the city.  He was concerned that the council tax process was becoming more centralised and controlled by the Government and could not support the changes.

64.3         Councillor Wealls stated that it was a difficult decision to take and noted that the council was moving closer to the average rate for an Authority in the country.  He noted that the council tax collection rate had improved and suggested that it was partly as a result of improvements in the economy.  He also felt that the previous Administration could have taken action to enable resources to be available to help address the situation.

64.4         Councillor Littman stated that he believed the vulnerable in society were being disproportionately affected as a result of the proposals and argued that there were alternative actions that could be taken; e.g. the relationship with the Revenue Support Grant could be reviewed.

64.5         The Mayor stated that there was a need for a point of clarification and called on the Monitoring Officer to clarify the position in relation to the decision before the council.

64.6         The Monitoring Officer referred Members to the extract from the proceedings of the Policy & Resources Committee meeting held on the 3^rd December, which had been circulated with the addendum papers.  He stated that the recommendations should have been clearer, in that the Council was being asked to approve the Council Tax Reduction Scheme as detailed below point 4 and listed in roman numerals.  He apologised for the error in the draft minutes and noted that the Interim Executive Director for Finance & Resources had clarified this point at the Policy & Resources Committee meeting. 

64.7         He therefore confirmed that the approval of the Council Tax Reduction scheme was reserved to full Council and the Council was recommended to approve the scheme as outlined in the extracts and the report.

64.8         The Mayor thanked the Monitoring Officer for the clarification and called on Councillor Hamilton to respond to the debate.

64.9         Councillor Hamilton stated that whilst the council tax collection rate may have improved, the income from business rates had fallen.  He also noted that the previous Administration had put forward increases in the level of CTR and that given the funding shortfall outlined earlier, the proposed increase was necessary.  He therefore recommended that the revised scheme be agreed.

64.10      The Mayor referred to the extracts from the proceedings of the Policy & Resources Committee and stated that points 1 to 4 were for noting and that the scheme as detailed and listed under points i to iv was recommended for approval.  She then asked for the voting system to be activated and put the recommendations to the vote.

64.11      The Mayor confirmed that the recommendations had been approved by 41 votes to 9 as detailed below:

64.12      RESOLVED:

(1)       That it be noted that the Council undertook formal consultation as a part of this review and that as part of the formal consultation a draft scheme was published and people were invited to give their views on that scheme;

(2)       That the outcome of that consultation (appendix 1) which has been summarised in section 5.4 be noted;

(3)       That it be noted that an Equalities Impact Assessment (EIA) (appendix 2) has been undertaken on the proposed changes in the draft scheme and the recommendations in this report. It should further note that, to meet their Public Sector Equality Duty, members must give conscientious consideration to the findings of this assessment when making a decision on the recommendations in 2.9.1 – 2.9.4. The actions which will be undertaken as a result of this EIA are set out in section 7.4.

(4)       That it be noted that the Chief Finance Officer (s151) will, prior to 1^st April 2016, exercise delegated powers to increase the appropriate calculative elements of the scheme to give effect to national changes.

Scheme from 1^st April 2016

(5)       That the changes set out in paragraphs 2.9.2 and 2.9.3 of the report are made to the Council Tax Reduction Scheme (Persons who are not Pensioners)(Brighton & Hove City Council) 2013 to take effect from 1^st April 2016;

(6)       That people on CTR will receive up to an 80% discount on their Council Tax meaning the minimum contribution people of working age pay towards their Council Tax be  changed from 15% to 20%;

(7)       That for customers entitled to CTR on 31^st March 2016 transitional protection be provided until either the claim ends; the customer moves property; or 31^st March 2017 (whichever occurs first) to minimise the increase paid by any household to £1.65 per week inclusive of the separately agreed Council Tax rise as a result of the change set out in 2.9.2 only; and

(8)       That the discretionary fund used to support the CTR scheme be set at a minimum of £0.1m and maintained at the 2015/16 level of £0.15m through the use of up to £0.05m from the Welfare Reform reserve.

Note:

64.13      The Mayor then adjourned the meeting at 6.40pm for a refreshment break.

64.14      The Mayor reconvened the meeting at 7.15pm.