To seek agreement for a Council Tax Support Scheme in the light of the requirements set by the Government and the outcome of local consultation and determine the level of Council Tax Discount for vacant properties and second homes.

The Cabinet Member Corporate Services presented the report of the Chief Officer Finance and Commercial and made the following points:

·         The report sought agreement for a Council Tax Support Scheme in the light of the requirements set by the Government and the outcome of local consultation and to determine the level of Council Tax Discount for vacant properties and second homes.

·         The Council must provide for a local tax support scheme or it would revert to a default scheme which would cost in excess of the money the authority would now receive in grant funding.

·         Cabinet was informed that the government announced a transitional grant scheme after the authority had consulted on its proposals.  The authority has opted to take the grant, which means that only two principles consulted on would be used.

·         It is proposed to have a scheme for one year and to review the position during that year and to assess whether the grant would continue. 

·         In order to meet the £1.4m funding reduction it is proposed to use changes to council tax discounts to mitigate the loss of funding from central government.  As a result the report also includes proposed changes to discretionary discounts. 

·       The government has prescribed a number of elements that must be included in the scheme including full protection for pensioners so that their council tax support remains at the same level as their current council tax benefit.  This means that additional pressure falls on claimants of working age.  It is also expected that the scheme would protect vulnerable claimants and provide incentives for work. 

·       The council consulted on proposed changes from 30 August to 26 October, this included consultation with the Police and Fire and Rescue Authorities, which showed broad agreement for all except two of the factors.

The following comments were made in discussion:

·         It was noted that the response rate to the consultation was disappointing.

·         In response to a question it was noted that around 15,000 claimants  were of working age.

·         It was noted that claims could now be made for second homes.

·         It was noted that in order to receive the grant all tax payers were now expected to pay something in the way of council tax. 

·         In response to a question on the increased number of potential defaults with the new requirements, the Chief Officer Finance and Commercial stated there was currently 5,000 people who did not pay council tax.  It was added that the collection rates were likely to reduce, currently the authority has a good collection rate.

·         The Leader emphasised this was a one year grant scheme only

·         In response to a question Cabinet was advised that 44% of respondents were recipients of council tax benefit.

RESOLVED

          THAT:

a)    The Council Tax Transitional Grant be accepted;

b)    Subject to the above, it be recommended to Council to adopt a new council Tax Support Scheme for 2013/14 based on the adoption of two of the principles that were consulted upon as indicated in paragraph 31 of the report, so that we meet the requirements of the grant; and

c)    The changes to Council Tax discounts outlined in the report be implemented from 1 April 2013.