Issue - items at meetings - Council Tax Reduction Review

Report of the Interim Executive Director for Finance & Resources (copy attached).

1)           Notes 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)           Notes the outcome of that consultation (appendix 1) which has been summarised in section 5.4.

3)           Notes that an Equalities Impact Assessment (EIA) (appendix 2) has been undertaken on the proposed changes in the draft scheme and the recommendations set out in 2.9.2 – 2.9.4 in this report. The committee 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)           Notes 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.

RESOLVED TO RECOMMEND TO COUNCIL

5)           It notes 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.

6)           It notes the outcome of that consultation (appendix 1) which has been summarised in section 5.4.

7)           It notes 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.

8)           It notes 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.

Proposed scheme from 1^st April 2016

                 i.          The changes set out in 2.9.2 and 2.9.3 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.

               ii.          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%.

              iii.          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 (which ever 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.

              iv.          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.

82.1       The Committee considered a report of the Interim Executive Director for Finance & Resources in relation to Council Tax Reduction Review. The Council introduced a local Council Tax Reduction scheme from 1 April 2013 as a result of national changes localising the previous Council Tax Benefit system. Under legislation the Council Tax Reduction Scheme had to be reviewed each year. The purpose of the report was to set out that review the resulting recommendations.

82.2       Councillor Mac Cafferty expressed concern in relation to the report as he felt it would have an adverse impact on some of the poorest residents in the city; he felt the full implications of the decision before the Committee were not clearly set out in the report; which could lead to potential legal challenge and the conclusions drawn in the report did not reflect the consultation responses that had been received. Councillor Mac Cafferty reiterated his concern that the report did not accurately reflect the full impact of the proposed decisions.

82.3       In response to the issue of potential legal challenge the Head of Legal & Democratic Services stated he was of the view that the Council had complied with the legal requirement to consult.

82.4       Councillor Sykes stated that the report needed to be considered in the context of the reduction in support from Central Government and the impact would be felt by the poorest families in the city; he highlighted the further complication of the issue when personal allowances were considered. He stated that increasing the minimum liability made it more difficult for families when Council Tax was increased and reduced the flexibility to be more creative with how Council Tax operated.

82.5       Councillor Hamilton highlighted that consultation had been undertaken with every recipient of Council Tax Reduction, but that exercise had only received a 2% rate of response which was not considered a reliable guide. He went on to highlight the £1.4m that the Administration were committing towards the scheme and, whilst there was an increase, this was low and had been the product of very careful consideration.

82.6       The Chair then put the recommendations to the vote:

82.7       RESOLVED – That the Committee:

1)        Notes 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)        Notes the outcome of that consultation (appendix 1) which has been summarised in section 5.4.

3)        Notes that an Equalities Impact Assessment (EIA) (appendix 2) has been undertaken on the proposed changes in the draft scheme and the recommendations set out in 2.9.2 – 2.9.4 in this report. The committee 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)        Notes 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.

RESOLVED TO RECOMMEND TO COUNCIL

5)        It notes 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.

6)        It notes the outcome of that consultation (appendix 1) which has been summarised in section 5.4.

7)        It notes 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.

8)        It notes 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.

9)        It agrees that the following in relation to the proposed scheme from 1 April 2016:

                                i.          The changes set out in 2.9.2 and 2.9.3 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.

                               ii.          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%.

                              iii.          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 (which ever 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.

                              iv.          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.