Agenda item - Council Tax Support System - final scheme

Extract from the proceedings of the Policy & Resources Committee meeting held on the 29^th November 2012, together with a report of the Director of Finance (copies attached).

63.1         Councillor Littman introduced the report and stated that having had to take on the responsibility for administering and producing a council tax support system he believed that officers had produced an exceptional scheme.  He noted that the council would be putting in £1m towards the scheme, in order to ensure that the vast majority of people would pay less than £2 a week in council tax.  He therefore recommended the scheme to the council.

63.2         Councillor A. Norman stated that it was an excellent report and wished to place on record her thanks to the officers concerned.  She referred to paragraph 3.16 and stated that she hoped appropriate measures would be set in place to keep the potential for fraud to a minimum.

63.3         Councillor Hamilton noted that the Government’s decision to give local authorities responsibility for their own council tax support scheme had come with a cut in level of funding available to support such a scheme.  He was concerned that the changes would result in a reduction in the collection rate and add pressure for those agencies that offered support and advice for debt management.

63.4         Councillor G. Theobald stated that the Administration had the choice to fully fund the scheme and it was for the council to decide on how resources were distributed.  He noted that the Government had sought to enable local authorities to have greater control over their own schemes as part of its management of deficit that had been inherited.

63.5         Councillor J. Kitcat stated that he believed the Government had not given the process sufficient consideration and had issued regulations at the last minute which had not helped in enabling officers to develop the scheme.  He believed that the scheme before the council was likely to be one of the best in the country and noted that the council was further ahead than many other authorities because of the work undertaken by the officers.

63.6         Councillor Phillips stated that she had chaired the scrutiny review panel which had been established following the Leader’s request for a review of the changes that were being recommended by the Government.  She wished to thank her fellow panel members and the representative from the East Susses Credit Union and noted that the majority of recommendations had been taken on board.  However, she was concerned that for many households the additional council tax payment was going to prove to a real hardship.

63.7         Councillor Janio suggested that the heart of the problem was as a result of the previous Government’s failure to control borrowing and it was now left to the current Government to tackle the issues.  He suggested that the Administration should do the same and find the resources to fully find the scheme should they wish to do so.

63.8         Councillor Jarrett stated that the Government had given the responsibility to local authorities but at the same time reduced the level of funding available.  It was for each local authority to determine how they managed the situation and he believed the officers had done a tremendous job in bringing forward a scheme that could be funded and that could support many of the households affected.

63.9         Councillor Powell stated that in her role as a career adviser she had seen more long-term unemployed people in the last 6 months than ever before and suggested that the changes were the start of an attack on the Welfare State.  She believed officers had done an excellent job in developing a scheme for the city and suggested that the Government should look at ways of helping local authorities to administer their schemes.

63.10    Councillor Jones stated that whilst he believed it was the best scheme possible for the city, he remained unconvinced that it would protect the most vulnerable in the city.  He was concerned that the council was being placed in such a position and unsure as to whether he could support the recommendations before the council meeting today.

63.11    Councillor Mears stated that she was disappointed by the various comments attributing the blame on the Government and pointed out that it was for the Administration to look after the interests of the residents of the city.  As such, they could decide to identify the necessary funding for the scheme so that there was no impact of those in receipt of council tax benefit and to set a budget that was appropriate for all.

63.12    Councillor Littman noted the comments and stated that he believed it was a fair scheme for the city and that without it there was a likelihood of a more costly one being imposed.  He therefore recommended that it be approved and noted that it would need to be reviewed, in order for a permanent scheme to be established for 2014.

63.13    The Mayor noted that the recommendations contained in the report had been moved and put them to the vote.

63.14    RESOLVED:

(1)   That the Overview and Scrutiny report at appendix 1, its recommendations and the Policy & Resources Committee’s responses at appendix 2 to the report be noted;

(2)   That the information about the Government’s October announcement of transition grant at appendix 3;be noted;

(3)   That the feedback from consultation and the responses at appendix 5 and section 4 of the report be noted;

(4)   That the Equality Impact Assessment at appendix 6 to the report be noted;

(5)   That it be agreed that the proposals in the draft scheme published in July be adopted with the amendments necessary to satisfy the criteria for transition grant set out in the October announcement;

(6)   That the full text of the final scheme as detailed in appendix 4 and in the list of amendments as detailed in the addendum papers be agreed;

(7)   That accordingly to make the Council Tax Reduction Scheme (Pensioners) (Brighton & Hove City Council) 2013 and the Council Tax Reduction Scheme (Persons who are not Pensioners) (Brighton & Hove City Council) 2013 (which together make up the main scheme) as set out in Part 1 of appendix 4 and the Discretionary Council Tax Scheme (Brighton & Hove City (Council) 2013 (the discretionary scheme) as set out in Part 2 of appendix 4;

(8)   That the Director of Finance be authorised to take all appropriate steps to implement and administer the main scheme and the discretionary scheme, including (1) publishing the main scheme in accordance with statutory requirements, (2) applying for any funding for which the Council may be eligible, and (3) responding to any other government initiatives or consultation exercises; and

(9)   That the Head of Law be authorised to make suitable amendments to the Council’s constitution to reflect the council’s new functions in relation to council tax reduction schemes, in particular (1) to indicate in Part 3 (Council Functions) that only the Full Council can make, revise or replace its main scheme and (2) to replace in the Schemes of Delegation to Committees and Sub-committees and to officers any references to council tax benefit with references to council tax reduction schemes.